MBS MID-DAY: 9/30/2011

By: Matthew Graham
MBSonMND: MBS MID-DAY
Open MBSonMND Dashboard
FNMA 3.5
102-25 : +0-13
FNMA 4.0
104-27 : +0-09
FNMA 4.5
106-01 : +0-06
FNMA 5.0
107-13 : +0-03
GNMA 3.5
104-14 : +0-13
GNMA 4.0
106-28 : +0-11
GNMA 4.5
108-16 : +0-07
GNMA 5.0
109-19 : +0-05
FHLMC 3.5
102-23 : +0-14
FHLMC 4.0
104-22 : +0-09
FHLMC 4.5
105-23 : +0-07
FHLMC 5.0
107-02 : +0-04
Pricing as of 11:04 AM EST
Morning Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBSonMND Dashboard .
9:58AM  :  ECON: Consumer Mood Improves but Worries Persist
(Reuters) - U.S. consumer sentiment improved in late September but worries persisted about jobs and finances which could curb household spending in the coming months, a private survey released on Friday showed.

The Thomson Reuters/University of Michigan's final September reading of the overall index on consumer sentiment stood at 59.4, up from 57.8 earlier this month. Economists had expected no change from the initial September reading.

The index finished at 55.7 in August. "The data indicate that consumers have shifted from anticipating deeper declines to the growing belief that the economy will stagnate at its currently depressed level," survey director Richard Curtin said in a statement.

The survey's barometer of current economic conditions rose to 74.9 from 74.5 in early September and 68.7 in August. Analysts had expected no change from the early September figure.

The survey's gauge of consumer expectations edged up to 49.4 from 47.0 in early September and 47.4 in August. Analysts had expected no change from the earlier reading.

The survey's one-year inflation expectation fell to 3.3 percent from 3.7 percent earlier this month and 3.5 percent in August, while the survey's five-to-10-year inflation outlook dipped to 2.9 percent from 3.0 percent in early September and was unchanged from 2.9 percent in August. (Reporting by Richard Leong; Editing by James Dalgleish)
9:51AM  :  ECON: Chicago PMI Up Strongly in Sept
(Reuters) - Business activity in the U.S. Midwest grew more than expected this month, buoyed by new orders and a jump in employment, a report showed on Friday.
The Institute for Supply Management-Chicago business barometer rose to 60.4 in September. The reading was 56.5 in August, and economists had forecast a September reading of 55.5.
The employment component of the index jumped to 60.6, from 52.1 in August. New orders rose to 65.3, from 56.9.
A reading above 50 indicates expansion in the regional economy.
(Reporting by Ann Saphir, Editing by Chizu Nomiyama)
9:45AM  :  ALERT: MBS Significantly Higher Overnight. Rates Rally
A combination of bond-friendly overnight data and weak consumer spending data this morning is bringing MBS to their highest levels since the major sell-off on the 23rd. Fannie 3.5's are flirting with 103-00 and 10yr yields are just over 9 bps lower at 1.907
Although the overnight session wasn't too robust in terms of volume, things have picked up so far this morning and we're waiting on the next reports: Chicago PMI and Consumer Sentiment coming up shortly. Unless one of those contains a big, economically bullish surprise, rate sheet offerings will be the best of the week.
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBSonMND Dashboard .
Matt Hodges  :  "WF .125 improvement"
Matt Hodges  :  "roughly .375 better"
Matt Hodges  :  "WF, BBT, USB, GMAC so far"
Steve Chizmadia  :  "You have a ratesheet yet MH?"
Andrew Horowitz  :  "looks like a double shrug to econ data"
Matthew Graham  :  "RTRS - THOMSON REUTERS/U. OF MICH CONSUMER EXPECTATIONS INDEX FINAL SEPT 49.4 (CONSENSUS 47.0) VS PRELIMINARY SEPT 47.0 "
Matthew Graham  :  "RTRS- THOMSON REUTERS/U. OF MICH US CONSUMER SENTIMENT FINAL SEPT 59.4 (CONSENSUS 57.8) VS PRELIMINARY SEPT 57.8 "
Matthew Graham  :  "RTRS - CHICAGO PURCHASING MANAGEMENT NEW ORDERS INDEX AT HIGHEST SINCE APRIL 2011 "
Matthew Graham  :  "RTRS - CHICAGO PURCHASING MANAGEMENT PRICES PAID INDEX AT LOWEST SINCE SEPT 2009 "
Matthew Graham  :  "RTRS- CHICAGO PMI EMPLOYMENT INDEX 60.6 IN SEPT VS 52.1 IN AUG "
Matthew Graham  :  "RTRS - CHICAGO PURCHASING MANAGEMENT INDEX 60.4 IN SEPTEMBER (CONSENSUS 55.5) VS 56.5 IN AUGUST "