MBS RECAP: Extremely Slow Day, But Moderately Improved
By:
Matthew Graham
•
MBS Live: MBS Afternoon Market Summary
By the time it's over, today will be close to the slowest
day of the year. Asia was out due to holidays in Japan and
China. Europe was fairly quiet and Treasuries resisted
weakening at the same pace suggested by German Bunds. The
onset of the domestic session say a quick normalization of
yields that relentlessly sought out Friday's late day range
and proceeded to stay perfectly inside that range until
around 1pm. Dovish Fed-Speak from Yellen (realistic
assessment of QE and fairly soft on the economy) actually
had an impact here and kicked yields down a whopping 1-2 bps
before corporate rate-lock selling brought 10's back to the
previous range just before the 3pm close. Most trading
adhered technically to a consolidation around the pivotal
mid 1.95% range. For their part, MBS took the opportunity
to undo some of their relative weakness vs Treasuries at the
end of last week. Trading was even slower here, but Fannie
3.0s ratcheted calmly to 103-04 in the morning and topped
out at 103-05 in the afternoon, looking very much immune to
the mild fluctuations in Treasuries. Several lenders
repriced positively.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
|
|
|
||||||||||||
| Pricing as of 4:04 PM EST | ||||||||||||||
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.
1:36PM :
Prodding Resistance Levels In Low Volume, MBS At Highs
The previous ceiling of resistance for MBS on the day--103-04--has now given way to 103-05. 10yr yields are currently testing their lows of the day in a similarly underwhelming manner, down to 1.9482 vs 1.9500 resistance. Stocks are flat. Volume is low. Headlines aren't moving the needle. The 'price leader' repriced positively and another one or two aren't out of the question. Overall, however, the emphasis is on slowness and a mostly sideways grind (albeit, on the positive side of sideways). Not reading much, if any technical significance into the breaks.
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.
Victor Burek : "the sheets i saw were pretty conservative at the open"
Ira Selwin : "Investors quick to re-price today"
Eric Franson : "REPRICE: 2:28 PM - Wells Fargo Better"
B-C : "REPRICE: 2:24 PM - Chase Better"
JRS : "REPRICE: 2:10 PM - Franklin American Better"
Charles Tadros : "REPRICE: 2:03 PM - Interbank Better"
Brett Boyke : "= good for now"
Matthew Graham : "in other words, 3.0s suffered more recently because they're longer duration (paid off more slowly)."
Matthew Graham : "early stages of correcting the "duration shedding' that had been going on in earnest since the 25th."
Brett Boyke : "like last week, it looks odd that the 3.0 is outpacing the 3.5, anything to be drawn from that trend MG?
"
Rob Clark : "REPRICE: 1:21 PM - Provident Funding Better"
Amy : "there is, and if using 'tier 2' eligibility, you must purchase a home for $141,000 or more, meaning if you already own 1 home on VA, the purchase price on the second one must exceed the 141k."
Mark Gordon : "I think there is a dollar amount to your VA benefit however."
Dennis Lykins : "VA has no limitation on financed properties, you do have investor requirements that will override va."
Jason York : "and if their buying a primary residence, you will probably see less limitations"
Jason York : "I don't think VA has a litmitation, but I'm sure most lenders have overlays"
Chris Blount : "Does VA only allow you to have 4 financed properties when purchasing a new primary home? The other homes are not VA loans"
Read what our user's have to say about MBS Live on LinkedIn.
» Start a two week free trial of MBS Live.