MBS RECAP: Courtesy Rally To End The Week
By:
Matthew Graham
•
MBS Live: MBS Afternoon Market Summary
After 4 days of nastiness--the last of which being a head-fake rally that subsequently ended at weaker levels--bond markets finally ended in the green on Friday. The bounce back wasn't insignificant either though the 104-18 closing price in Fannie 3.0s leaves a little to be desired when viewed against the 105-06 opening levels for the week. Importantly, Treasuries ended the day well into the 1.7's, shying away from a definitive break across lines in the sand that would have been more alarming from a technical perspective. Actually, we're a bit surprised at the strength today, and would have expected a more serious test of some slightly higher yields given the strength of the negative trend in bond markets earlier in the week. We'll need to see how Monday goes before we can rule that completely out ahead of next week's FOMC Announcement.
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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Afternoon 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 afternoon.
12:16PM :
ALERT ISSUED:
Once More, With Feeling; AKA Bond Market Rally Holding Ground Today
After yesterday's morning rally collapsed heading into the 11am hour, it feels much better today to be crossing the Noon mark with the rally very much intact, AND at higher levels than yesterdays.
What had been a broad "risk on" movement heading into yesterday's inception of the EU Summit is now shifting to a broad "risk off" movement as the window for summit-related headlines closes. We don't mean to suggest this an an exclusive market-mover, but rather a sort of underlying theme--a phantom force, if you will--providing a pervasive, mysterious will to sell risk-free and low-risk securities in favor of higher-risk, higher-reward "stuff" like European peripheral debt and stocks, etc...
Fannie 3.0s are up more than 3/8ths of a point (13 ticks) to 104-19 and made it as high as 104-22 moments ago. Positive reprices have continued as lenders breathe some sighs of relief and unclench their understandably protective grip on rate sheets developed over the past two weeks. 10yr yields are down to 1.766 and Stocks are cliff-jumping. Happy Friday.
What had been a broad "risk on" movement heading into yesterday's inception of the EU Summit is now shifting to a broad "risk off" movement as the window for summit-related headlines closes. We don't mean to suggest this an an exclusive market-mover, but rather a sort of underlying theme--a phantom force, if you will--providing a pervasive, mysterious will to sell risk-free and low-risk securities in favor of higher-risk, higher-reward "stuff" like European peripheral debt and stocks, etc...
Fannie 3.0s are up more than 3/8ths of a point (13 ticks) to 104-19 and made it as high as 104-22 moments ago. Positive reprices have continued as lenders breathe some sighs of relief and unclench their understandably protective grip on rate sheets developed over the past two weeks. 10yr yields are down to 1.766 and Stocks are cliff-jumping. Happy Friday.
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.
William Hansen : "2nd reprice"
William Hansen : "REPRICE: 2:41 PM - NYCB Better"
Tom Schwab : "REPRICE: 1:50 PM - AMC Better"
Christopher Stevens : "REPRICE: 1:37 PM - Wells Fargo Better"
Jeff Anderson : "REPRICE: 1:27 PM - Chase Better"
Kevin Zenstein : "REPRICE: 12:20 PM - PennyMac Better"
Jason York : "REPRICE: 12:19 PM - Plaza Better"
Rob Clark : "REPRICE: 12:13 PM - Provident Funding Better"
Tom Schwab : "REPRICE: 12:00 PM - Flagstar Better"
Ira Selwin : "REPRICE: 11:48 AM - Chase Better"
Thomas Nelson : "REPRICE: 11:46 AM - NYCB Better"
Ira Selwin : "REPRICE: 11:43 AM - Franklin American Better"
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