MBS MID-DAY: Quiet Overnight, Quiet Morning, MBS On Top
By:
Matthew Graham
•
MBS Live: MBS Morning Market Summary
Today is one of those days that looks like it will be relatively uneventful based on the agenda of data and events. So far, that is proving to be the case as volume and volatility has been light across the board. Treasuries are slightly weaker and MBS are slightly improved with Fannie 3.0s up 3 ticks at 105-27. With little else to watch, bond markets seemed to pay a reasonable amount of attention to the domestic stock market open at 9:30. As stocks moved lower in price, 10yr Treasuries backed off their 2-day highs and fell in line with yesterday's low range. While this could also have been a lead-in to the scheduled Fed buying from 10:15-11:00am, the important part is that the ranges in both MBS and Treasuries have been maintained (though MBS have pushed theirs a tick or two into better territory, it's not looking like a breakaway rally).
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
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Morning Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this morning.
9:25AM :
ALERT ISSUED:
MBS Turn Green On Data-Free Morning, Treasuries Slighty Weaker
The overnight session was largely uneventful with 10yr Treasuries holding the exact same range from Friday afternoon through yesterday morning. Asian hours continue to be subdued with the week-long Chinese holidays and there was little by way of fanfare during European hours, though bond markets did move to the weaker end of their range.
Despite that, and despite opening in slightly weaker territory vs yesterday's close, MBS are up 1/32nd at the moment at 105-26 while 10yr Treasuries are still a few bps higher at 1.6404. Stock futures climbed during European hours as well as the Euro, adding to the sense that we got a simple "risk-on" move and that MBS continue to be able to weather such storms relatively better than Treasuries.
There are no significant pieces of economic data today and perhaps the only event bearing a mention on the calendar is the regularly scheduled Fed "Twist" buying (in 25-30yr maturities today). Volume has been fairly light and it will take a fairly noteworthy headline or large trade to get the pack moving decisively in one direction or another before the important employment data begins to hit tomorrow.
Despite that, and despite opening in slightly weaker territory vs yesterday's close, MBS are up 1/32nd at the moment at 105-26 while 10yr Treasuries are still a few bps higher at 1.6404. Stock futures climbed during European hours as well as the Euro, adding to the sense that we got a simple "risk-on" move and that MBS continue to be able to weather such storms relatively better than Treasuries.
There are no significant pieces of economic data today and perhaps the only event bearing a mention on the calendar is the regularly scheduled Fed "Twist" buying (in 25-30yr maturities today). Volume has been fairly light and it will take a fairly noteworthy headline or large trade to get the pack moving decisively in one direction or another before the important employment data begins to hit tomorrow.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.
Matthew Graham : "The scheduled Fed buying looks like the biggest consideration of the morning so far, though doesn't necessarily explain the adjoining move lower in stocks."
Matthew Graham : "RTRS- NY FED SAYS BUYING TREASURIES WITH MATURITIES RANGING FROM FEBRUARY 2036 TO AUGUST 2042 "
Matthew Graham : "RTRS- MOODY'S SAYS STILL STUDYING SEVERAL FACTORS INCLUDING SPAIN BANK CAPITAL NEEDS, BUDGET, SIZE OF SUPPORT MECHANISMS "
Matthew Graham : "RTRS - MOODY'S SAYS TO ANNOUNCE RESULTS OF SPAIN RATING REVIEW THIS MONTH "
Matthew Graham : "(hint: note the "greenness of the entire 15yr stack)"
Matthew Graham : "they're going to have to buy other stuff on occasion for the simple fact that they're going to have too much cash allocated to MBS buying, burning a hole in their proverbial pockets."
Matthew Graham : "Assume most/all 3.0 purchases are Fed"
Ted Rood : "Assume most/ALL Fed purchases are 3.0's, MG?"
Matthew Graham : "Fannie 3.0s, America's sweetheart. "
Jeff Anderson : "Nice, Ted. GM, all. Interesting only the production coupons are in the green so far."
Ted Rood : "Jim has too many unsourced deposit from offshore inside trading."
Ross Miller : "I agree but I think that it is great that they get the real world experience of what we are going through."
Jason Anker : "Thats the 2nd time Jim C said that in two years, last time he couldn't refi. Maybe its him. "
Roger Moore : "i wouldn't think either of those guys would need a loan"
Ross Miller : "Jim Creamer on CNBC this morning talked about how hard it was to buy a house. He is buying an investment property in New York that started in July and has yet to close because of all the requirements and challanged Ben Bernanke to try to buy a house in today's lending market. This is all about the process and noting about the borrowers."
Michael Owens : "same BS BofA is dealing with over CW"
Brent Borcherding : "Gov't shakedown. They'll settle for a fine."
Gus Floropoulos : "NY tax dollars at work"
Christopher Stevens : "GM all. I just wanted to make sure I was clear on something. In '08 Govt (Fed Reserve) gives JPM $29bill non-recourse loan collateralized by mortgage debt (and they stated if the mortgage debt became insufficient to repay the loan they could not seize JPM assets) to purchase Bear Stearns in order to prevent financial chaos in the market. Now the NY AG is suing JPM for MBS sold by Bear Stearns. That is some funny stuff."
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