MBS RECAP: 11/18/2011

So... Hopefully us pointing this out doesn't "jinx" it in any way, but how 'bout that 101-19!? For those of you not in front of the computer at the moment, the flat line at 101-19 that's been on the Fannie 3.5 chart for most of the day continued to offer firm support all the way to the 3pm close.

Treasuries held under their 2 day high yields as well in the 10 and 30yr maturities. 7's and under were higher vs yesterday although did show some support at the afternoon highs.

We take little joy in this, but all in all, today has pretty much been "as expected," with a persistent weakness across both markets since the morning hours. Take a look at the most recent blog post linked below to see how stocks and bonds have diverged today.

But there is some more joy in considering we're likely out of the woods for reprice risk having crossed that 3pm mark above the support level. We'd set an automatic alert somewhere around 101-17 depending the lender to guard against any late day weakness and call it a day on the lock/float watch (for those inclined to float into the weekend).

Statement by the Press Secretary on H.R. 2112

H.R. 2112, the “Consolidated and Further Continuing Appropriations Act, 2012,” provides FY 2012 full-year appropriations through September 30, 2012, for the Departments of Agriculture, Commerce, Health and Human Services', Food and Drug Administration, Housing and Urban Development, Justice, Transportation; the National Aeronautics and Space Administration, the National Science Foundation, and other small agencies. In addition, it provides for continuing FY 2012 appropriations through December 16, 2011, for the remaining projects and activities of the Federal Government.