MBS AFTERNOON: Reprices for Better Reported

As the session draws closer to close, the FN 4.0 is +0-18 at 99-22 yielding 4.035%  and the FN 4.5 is +0-08 at 102-01 yielding 4.252%. The secondary market current coupon is now 4.078%. The CC is +74/10yr TSY and +65/10yr swap.

In MBS market trade flows, we've noted fast money accounts taking profits in the belly of the coupon stack, specifically 5.0s and 5.5s. Of course, the Fed has made their presence known today...easily absorbing originator supply...which again was light...especiailly at these rich dollar prices. While the lack of new loan production is somewhat distressing from a trader's perspective, from where we stand, it's more of the same old same old...most fence sittters have already refinanced while others continue to battle tighter lending guidelines and a lack of equity.

Am I missing something here? Do you have a healthy pipeline just waiting for rates to go lower or does every loan matter at this point? Is it feast or famine? From my viewpoint, times are tough and originators are fighting it out for every QUALIFIED application.

Here is the FN 4.5....

REPRICES FOR THE BETTER have been reported...

After making much progress today, the 10yr is running into resistance at 3.32%. If benchmark yields start to rise, "rate sheet influential" MBS prices will fall a few ticks. But nothing overly dramatic....