MBS AFTERNOON: Near the Highs of the Day
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Heading into the 5pm "BONDS PERFORMED WELL DESPITE RALLYING STOCKS" marking period the FN 4.0 is +0-04 at 98-09 yielding 4.1775% and the FN 4.5 is trading +0-03 at 100-27 yielding 4.399%. The secondary market current coupon is 4.343%.
Below is the two day FN 4.5. As you can see the late Friday rates rally has extended. Rate sheet influential prices have broken through the intraday range and are currently heading out near the highs of the day.
In MBS MORNING we discussed the Fed's reverse repo press release. HERE is a Fed document that will help one better understand the process.
Not expecting many reprices for the better....