MBS End Week at Best Closing Levels; No Comfort Until We Hear from FOMC
By:
Matthew Graham
•
MBS Live: MBS Afternoon Market Summary
The sense of anxiety and uncertainty is palpable. Almost in perfect unison, when the lunch bell rang, traders in equities and bond markets alike began taking chips off the table ahead of next week's seemingly epic FOMC events. Before that, MBS had reached its best levels of the week, and even after the slide in the PM hours, managed to close at the best end-of-day levels of the week. 10yr yields didn't make any tremendous heady in the intermediate range, but they did manage to confirm the break below the 2.18 level that had been providing a floor of resistance all week. It would be nice if this was a meaningful bullish change of pace, but with this being the first visit to 2.10 all week, this barely scratches the bullish surface of the 2.31-2.07 range boundary we'd expected to span the NFP to FOMC time frame. Beggars can't be choosers however, and in this recently bearish bond market, ending in the green at the week's best levels is better than almost any other Friday in recent memory, despite the Euphoric highs earlier in the day.
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 4:03 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.
1:30PM :
ALERT ISSUED:
MBS: The Legend (of Friday PM Selling) Continues; More Reprice Risk
Seriously... It's like 12 noon hit, MBS punched the clock and took off for the day. We've just burned through all the days gains and 10's have spiked to 2.143. Stocks are selling too. Everyone taking their ball and going home. More negative reprice risk now. At current levels we'd be surprised to NOT see most lenders reprice.
1:15PM :
ALERT ISSUED:
One Reprice Reported; More Possible
The slipperiness mentioned in the last alert hasn't exactly cleared up quickly, and if anything, has grown slightly more disconcerting. One negative reprice is already in and with another few ticks shed in Fannie 3.5s, and 10yr yield that's clearly trending higher since the conclusion of the Fed's scheduled Treasury buying, more could be on the way. Risks are incrementally increased.
12:59PM :
ALERT ISSUED:
Far Enough From Highs To Introduce Some Reprice Risk
10's have perked up (in a bad way) in the past few minutes and MBS are far enough off the highs of the session to warrant slightly increased reprice risk for any lender that priced at or near highs (which is most of them). That risk would be severe just yet, but we wanted to give you a heads up that it's on the rise. We would be surprised to see many reprices right now, but not surprised to see one, maybe two from the early crowd. That's not saying much, however, as we also wouldn't be surprised to see none. Point is: more risky than it was. MBS are about 5 ticks off the highs--just over an eighth of a point--and it's a Friday afternoon.
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.
Steve Chizmadia : "REPRICE: 3:32 PM - Sun West Mortgage Worse"
Steve Chizmadia : "Love this site. Your alerts just saved my clients about 40 bp in fee on two loans. Thanks as always MG"
Steve Chizmadia : "REPRICE: 3:22 PM - Pinnacle Worse"
Christopher Stevens : "REPRICE: 2:08 PM - Chase Worse"
Al Bordessa : "REPRICE: 2:04 PM - Stearns Lending Worse"
Bryan LaFlamme : "REPRICE: 2:02 PM - 360 Mortgage Worse"
Phillip Mangham : "REPRICE: 2:01 PM - Franklin American Worse"
Michael Mitchell : "REPRICE: 1:54 PM - Kinecta Worse"
Rob Clark : "their second. 30 year only."
Rob Clark : "REPRICE: 1:53 PM - Provident Funding Worse"
Jason Sheaffer : "i just locked 3 so a bounce back to +10 should be coming any minute now"
Matthew Graham : "remember, those straight down spikes are typically outlying quotes, not necessarily indicative of where the next trade will be"
Rob Clark : "REPRICE: 1:21 PM - Provident Funding Worse"
Nate Miller : "grr, gains going fast"
JRS : "Boo Friday afternoon sell-off"
Phillip Mangham : "REPRICE: 1:11 PM - Flagstar Worse"
Read what our user's have to say about MBS Live on LinkedIn.
» Start a two week free trial of MBS Live.