3-Year Treasury Supply Bid Well. MBS Prices Off Session Lows

Treasury just sold $34 billion 3s.  The auction went well. There were 3.31 bids submitted for every one accepted by Treasury. The high yield was lower than the 1pm "When Issued". HERE are the results.

Rate sheet influential MBS coupons are off the their session lows....

ALERT: Today is 48 hour notification day in the TBA MBS market. That means front month 30yr MBS coupon prices will seem to drop this afternoon as the settlement process begins. Don't panic when this occurs, it is a monthly event and your loan pricing hasn't been built using the August delivery coupons since the middle of July anyway.  We've been watching the September coupon since then and will roll forward to October in the next few days.  READ MORE