MBS RECAP: MBS Hold Flat; Treasuries Underperform; Quiet Conditions

By: Matthew Graham •

MBS stayed inside the micro-range established on Friday afternoon for the entire session.  The holiday-inspired quietness was evident from the overnight session where 10yr yields settled into an extremely narrow range shortly after the Asian market open and didn't budge until 8am.

At that point 10's began moving generally weaker throughout the session, without regard for data or events.  MBS mostly avoided that fate as Fannie 4.0s managed to hold on to morning lows--ultimately having more of a sideways day compared to the slightly weaker drift in Treasuries.

Bond markets close 3 hours early tomorrow (2pm Eastern) and then are fully closed for the Christmas holiday 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.

 
MBS
FNMA 3.0
95-16 : -0-01
FNMA 3.5
99-25 : -0-02
FNMA 4.0
103-06 : -0-04
Treasuries
2 YR
0.3874 : +0.0114
10 YR
2.9274 : +0.0424
30 YR
3.8471 : +0.0221
Pricing as of 12/23/13 4:45PMEST
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Andy Pada, Jr.  :  "I think this is an important time and opportunity. Director Watt has taken a bold step to review the impact. I encourage everyone to email the Director your thoughts; I also encourage all of us to reach out to our colleagues to do the same. Lastly, maybe we can set up MBS Live email folder or we can email MG and forward those same emails. This way MBS Live can lobby on our behalf to both the Director and to supply feedback to Dave Stevens and the MBA."
Ted Rood  :  "In my view, the fact Watt proactively stated his intent to revise/reduce/eliminate the LLPA's shows he has a large clue, unlike most in DC."
Frank Ceizyk  :  "Andy--I completely agree with you. This is a victory and it connects the dots all the way back to the consumer. We're always complaining about how anti-consumer everything is, but this is a big victory for the mortgage industry and the housing consumer"
Andy Pada, Jr.  :  "i really do believe we do have control over this stuff. If I didn't, i wouldn't be advocating."
Andy Pada, Jr.  :  "olick on CNBC talking about it now!"
Frank Ceizyk  :  "Michael--maybe we don't have control over it--but we can certainly give credit where credit is due. "
Ted Rood  :  "This is the kind of info our referral partners need to be made keenly aware of. May want to take the opportunity to send emails/call them to pass along the good news."
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