MBS RECAP: Healthy, Consistent, Drama-Free Rally On A Friday
By:
Matthew Graham
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MBS Live: MBS Afternoon Market Summary
Sometimes these things happen. We're sensitive to the general feeling that Friday afternoons tend to be tough more often than they do what they did today. That's not the only thing that makes today's rally feel extra special though. It's one thing to merely end up in positive territory on a Friday afternoon (which happens enough not to be "weird"), but we also BEGAN the day trading over yesterday's highs, and never lost more than 3 consecutive ticks for the balance of the day. There weren't even any moments of concern that the tone might change. All in all it was a much needed respite from recent toil. The improvements bring Fannie 3.0s to the low 104-20's, a long term pivot point that's only been crossed twice ever: once after offering post-QE3 resistance on the way to higher prices, and once in early October after a bounce that attempted to support the sell-off. At present, it shares strong similarities to 1.75% in 10yr Treasuries and we'll be watching both these technical levels carefully in the coming week.
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.
2:26PM :
ALERT ISSUED:
Sustained MBS Rally, On A Friday No Less!
Do not look directly at the sustained MBS rally. Do not think for more than a few moments about sustained MBS rally. If sustained MBS rally suspects that too many originators are aware of it, sustained MBS rally may become volatile. The makers of sustained MBS rally will not be held liable for any damages resulting from failure to adhere to these warnings.
Seriously though... There's a sustained MBS rally on a Friday. It's been pretty darn stable, and even after breaking sideways from the initial rally trend, it hasn't reversed course in any way, shape, or form. Underlying bond markets weren't phased by the equities pop at 1:30pm and neither was the sustained MBS rally.
We're going to stop talking about it now just to be safe, but as you may have noticed, positive reprices have been, and continue to be possible. Keep calm and rally on.
Seriously though... There's a sustained MBS rally on a Friday. It's been pretty darn stable, and even after breaking sideways from the initial rally trend, it hasn't reversed course in any way, shape, or form. Underlying bond markets weren't phased by the equities pop at 1:30pm and neither was the sustained MBS rally.
We're going to stop talking about it now just to be safe, but as you may have noticed, positive reprices have been, and continue to be possible. Keep calm and rally on.
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.
Tom Schwab : "REPRICE: 2:01 PM - Franklin American Better"
Mike Pennington : "REPRICE: 1:37 PM - PHH Better"
LSP : "REPRICE: 1:21 PM - Chase Better"
Nate Miller : "just had PF deny a loan bcs they didn't like the comps THEIR AMC's appraiser used...good times."
Scott Valins : "conditions 48 too"
Scott Valins : "RM u/w about 48 hours"
Roger Moore : "@sv, how is PF these days? turntimes?"
Steve Chizmadia : "REPRICE: 12:43 PM - Sun West Mortgage Better"
Mike Drews : "elevator up, stairs down...c'mon guys, you know that."
Benjamin Payne : "friday hedge guys. float until monday"
Ira Selwin : "market is still in the same range it's been don't expect a big change in your price"
philip mancuso : "yep, i'm seeing rate sheet very conservative"
Michael Gillani : "Yesterday opened 8 ticks in red and got hit 30bps, today open 12 in green and get 25bps better! Stingy to say the least!"
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