MBS MID-DAY: Slow Start
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MBSonMND: MBS MID-DAY
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Pricing as of 11:02 AM EST |
Morning Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBSonMND Dashboard
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10:34AM :
Absent Scheduled Econ Data, Bonds Track Stock Lever
MBS and Treasuries experienced their best levels of the day as stocks fell from early gains to test unchanged levels on the day. That was good enough for mid 3.41's in benchmark 10's. They're currently at 3.422 as stocks have come off their lows slightly. FNCL 4.5's are near their best levels of the day still, up 6 ticks at 101-28. With no scheduled data today and a relatively quiet session so far in terms of volume and volatility, the stock lever suggests itself as one of only directional indicators available. At current MBS price levels, lenders' rate offerings this morning should be coming out slightly better than Friday afternoon.
9:55AM :
MBS at Best Levels of the Morning
FNCL 4.5's are up 6 ticks currently at 101-28, their best levels of the past 2 sessions and around 20 ticks higher than the lowest levels seen Friday. 10yr notes are at their best levels as well with yields 2.84 bps lower at 3.4216. The stock lever is helping bonds push to these fresh lows after stocks opened stronger but have since reversed course to head toward unchanged.
9:07AM :
Fed's Lockhart says recession has altered consumers
WEST PALM BEACH, Fla., April 4 (Reuters) - U.S. consumers are a lot more cautious about their spending than they were before the recession, Atlanta Federal Reserve Bank President Dennis Lockhart said on Monday.
This more subdued approach to spending, even if negative for short-term economic growth is healthy in the long-run, helping address international imbalances characterized by high savings overseas and excess spending at home.
"Consumer spending has been growing more slowly relative to income than it did before the recession," Lockhart told an audience of business executives at the Palm Beach Strategic Forum. "I expect that this more measured consumption behavior is likely to persist."
In the past, Lockhart has cited such caution as an impediment to the economic expansion. But on Monday he pointed to the advantages of such a shift in behavioral patterns.
"A less consumption-dependent economy will help rebalance the country's external accounts," Lockhart said.
A similar adjustment is needed -- and already under way -- for a highly indebted U.S. government sector, Lockhart said.
"The public sector in the United States must stabilize its finances and reverse the accumulation of debt that has accelerated in recent years," Lockhart said.
In Washington, Democrats and Republicans continued to wrangle over the budget and the Congressional debt ceiling, a battle that threatens a shutdown of the federal government. (Reporting by Pedro Nicolaci da Costa; Editing by Andrea Ricci)
8:34AM :
Data-Free Morning Finds Bonds Slightly Higher
The entire week is lighter than last in terms of scheduled economic data. In fact, the most notable piece of the weekly agenda is the prolific speaking schedule of Fed's Lockhart who is with us 4 out of the 5 days. MBS are slightly stronger this morning after finishing at their highs of the day on Friday. FNCL 4.5's are currently up 4 ticks at 101-26 and Benchmark 10yr notes are just over 1 bp lower at 3.436.
7:55AM :
New MBS Commentary Post
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBSonMND Dashboard
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Victor Burek : "flagstar is .4 better"
JTB : "Any improvement on rate sheets?"
Adam Quinones : "another slow start in TBA land"
Matthew Graham : "so call it 3.40/42 ish IMO"
Matthew Graham : "idk AH... aren't all these technical levels these days best viewed with blurry vision?"
Gus Floropoulos : "need to close at those levels"
Andrew Horowitz : "GF the offers are there, but i wonder how many approvals for CC are going out"
Andrew Horowitz : "Lockharts comments are the exact reason why I am saying if oil moves to 120 level you will see a slow down in the economy"
Gus Floropoulos : "interesting indeed.....funny though how im getting 5 credit card offers in the mail everyday"
Matthew Graham : "actually vic, just did up a cool chart showing exactly what lockhart is saying"
Matthew Graham : "3.429 now"
Matthew Graham : "10's testing a break of the lows"
Victor Burek : "hasnt spending been increasing while wages have been flat?"
Victor Burek : "i dont get Lockhart's comment "Consumer spending has been growing more slowly relative to income than it did before the recession"
Matthew Graham : "Looks like we may have gotten a few resistance bounces in 10yr yields at 3.431. Volume is low and this probably isn't too significant, but 3.431 is as good as any glass ceiling for bond bulls. At least as far as the early parts of this morning are concerned."
Adam Quinones : "im looking for some rally as the week begins"