MBS RECAP: Holding Ground Fairly Well Against Post-Cliff-Deal Weakness
By:
Matthew Graham
•
MBS Live: MBS Afternoon Market Summary
The last-minute Fiscal Cliff deal clearly suggested that bond markets would have a tough day today, but with the nature of the deal being less than a "grand bargain," it wasn't clear how tough it would be. There was a good amount of correlation between stock prices and bond yields today, but by varying degrees. In other words, they both generally moved in the same direction at the same time, but bond markets got their bigger swings out of the way early. It's almost as if bond markets arrived at their verdict early in the day and settled down into fairly narrow ranges since 10am. As such, they weren't keen to chase a late day equities rally that just now brought stocks averages to their highs of the day. On an even more promising note, MBS held up much better than Treasuries with Fannie 3.0s only down 6/32nds at 4:06pm. Pretty uneventful considering that 10yr Treasuries are down 23/32nds in price and up 7.8bps in yield. Support levels clearly held today, it will be easier to confirm the supportive bounce if it's maintained through Friday's NFP.
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.
12:28PM :
MBS At Best Levels Of The Day. Positive Reprice Potential
Fannie 3.0 MBS just hit 104-21, which is only an eighth of a point (4 ticks) off Monday's close. Even though this isn't overly suggestive of positive reprices based on prevailing trading levels around this morning's rate sheet time, the general stability and positivity may sufficient for one or two lenders to offer the "stability reprice" that we sometimes see in these situations. This becomes more likely the longer current levels are held or improved upon with 104-23 being a likely target for more widespread reprices.
Bottom line, no guarantees of positive reprices, but things are moving in the right direction. In other markets, 10yr yields have fallen to 1.8283 from highs of 1.86 and S&Ps are off roughly 7 points from their highs of the morning.
Bottom line, no guarantees of positive reprices, but things are moving in the right direction. In other markets, 10yr yields have fallen to 1.8283 from highs of 1.86 and S&Ps are off roughly 7 points from their highs of the morning.
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.
Steven Stone : "you wont be able to get a case number until then"
Steven Stone : "the limiter is almost always 210 days from the closing date of the old loan"
Mike Pennington : "It is actually 180 days from the first payment before you can start new application."
Brayden Alexander : "6"
akaagassi : "FHA streamline - what is it 6 payments or 12 before you can streamline?"
Rob Clark : "REPRICE: 2:46 PM - Provident Funding Better"
akaagassi : "@MMNJ - nice call..."early loss, then slow uptick" has come to fruition..."
Eric Franson : "REPRICE: 2:05 PM - Wells Fargo Better"
Raul Lopez : "REPRICE: 1:48 PM - Sun West Mortgage Better"
Thomas Nelson : "REPRICE: 1:24 PM - Sierra Pacific Better"
Tom Schwab : "REPRICE: 1:06 PM - AMC Better"
James Barnes : "Just help an IRAQ vet discharge all of his student loans. Thought you may want to help your disabled vets too. http://studentaid.ed.gov/repay-loans/forgiveness-cancellation"
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