MBS RECAP: Sideways, Rates Wait for Next Week's Data
By:
Matthew Graham
•
MBS Live: MBS Afternoon Market Summary
Although bond markets began the day in weaker territory, that was quickly changed by weak economic data. The Empire State Manufacturing Index isn't a top tier market mover, but it can certainly have an impact when it deviates enough from expectations. It did that today, and the reaction in bond markets was all the more noticeable due to the lack of other relevant data in the same time slot and a narrow trading range overall.
Gains leveled off into the 10am hour and MBS set about holding a sideways range that straddled unchanged levels. Treasuries, on the other hand, didn't quite make it back to positive territory, preferring an "inside day" trading firmly within yesterday's range. Volume was light enough to consider today a superfluous post-game show to yesterday's Yellen-motivated session. Next week brings more meaningful economic data as well as FOMC Minutes on Wednesday.
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.
3:52PM :
MBS Outperforming; Heading Out Near Highs
MBS are trading at their best levels of the day with just over an hour to go. Fannie 3.5s are up 2 ticks now at 101-17 and 4.0s are up 5 ticks at 104-26. Meanwhile, Treasuries remain just slightly into negative territory with 10's at 2.7033.
Essentially, nothing has happened today after the morning's data-driven volatility. Bond markets began weaker, swung to their best levels after data, and have been in between ever since (though technically MBS just broke out of that range by 1 tick).
Positive reprices aren't out of the question, but are less likely than they might be if it was earlier in the day in the middle of the week.
Essentially, nothing has happened today after the morning's data-driven volatility. Bond markets began weaker, swung to their best levels after data, and have been in between ever since (though technically MBS just broke out of that range by 1 tick).
Positive reprices aren't out of the question, but are less likely than they might be if it was earlier in the day in the middle of the week.
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.
Gary Bracht : "CS, I've read where you have to show that the lock extension was not due to lender inactivity but delays were due to borrower or seller or other "outside" factors beyond your control in order to put them into the discount costs. CFPB apparently is focusing on these too feeling that slow lenders are making the borrower pay for their tardiness...document the hell out of the extension and discount would be my recommendation"
Christopher Stevens : "Are extension fees and extended rate lock fees considered bona fide discounts points? Getting conflicting answers."
Matthew Graham : "semi-colossal discussion on leads earlier today that you should be able to pick up simply by scrolling down. If not, then use the "browse" link at the bottom of the chat window."
Ethan Hackley : "Does any know of a good source for on-line leads that they are willing to share? I have used lead point in the past and have not been happy with the lead quality. I am a very small one man operation only licensed in CO so I am not looking for a high volume of leads. Feel free to e-mail me if you don't want to broadcast the info. Thanks"
Eric Franson : "REPRICE: 12:24 PM - Wells Fargo Better"
mok : "Did Wells Worsen or Improve just now? "
Hugh W. Page : "Interesting Hilsy blog piece on the next possible Fed move.... http://blogs.wsj.com/economics/2013/11/15/if-fed-lowers-unemployment-threshold-key-question-will-be-why/"
Clayton Sandy : "anyone having issues pulling up SunTrust in OB this morning?"
Caroline Roy : "VB, just reading down. who told you that you can't use retirement funds? not entirely true? if they are in a roth or trad IRA, you discount to 60% and get the terms of withdrawal. ONly an issue when they are in a 401k and you can only used funds if you are layed off"
Rich DiCintio : "Why cant u use retirement funds Victor...does he need cash to close or u just need assets for reserves?"
Jason Anker : "late in the day for Chase rates not ot be out?"
Caroline Roy : "if you can source them from an acceptable source, then you may not have to season them. WHere are the funds coming from?"
Bob Bowman : "Can borrower deposit funds for 2 months so they are seasoned?"
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