Apology for Technical Issues; Bond Markets Sideways
NOTE: Some readers may have received a glut of previous MBS Commentary updates from 3:10 - 3:55pm. We're very sorry for the inconvenience. It should not be an issue going forward as it was a factor of a one-time systems test.
As far as bond markets are concerned, things were much less interesting than our technical difficulties. MBS started the day in weaker territory thanks to bond market weakness in Europe overnight but soon had eclipsed yesterday's trading range by more than an eighth of a point as domestic traders pushed back.
Some lenders repriced positively on that rally, but not many. The gains have been slowly evaporating ever since hitting the highs just before 11am and we're now heading into the final hour just 1 tick lower on the day.
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Not for the first time today, 10yr yields are trading just over 3%, currently up 1.3bps at 3.004. Along with MBS, they hit their best levels of the day just before 11am.
MBS have been moving into weaker territory since then as well, but not at any sort of alarming pace just yet. Fannie 4.0s are still up 1 tick on the day (just hit 'unchanged' and bounced) at 102-28.
With previous highs at 103-01, this is technically enough movement to be on the very edge of negative reprice risk, but only for lenders who priced or repriced near those higher levels. All in all that makes reprices fairly unlikely for almost everyone, but not something that could be completely ruled out. Bottom line: if you weren't planning on locking today, this shouldn't change that, but if you were, now's as good a time as any.
Not for the first time today, 10yr yields are trading just over 3%, currently up 1.3bps at 3.004. Along with MBS, they hit their best levels of the day just before 11am.
MBS have been moving into weaker territory since then as well, but not at any sort of alarming pace just yet. Fannie 4.0s are still up 1 tick on the day (just hit 'unchanged' and bounced) at 102-28.
With previous highs at 103-01, this is technically enough movement to be on the very edge of negative reprice risk, but only for lenders who priced or repriced near those higher levels. All in all that makes reprices fairly unlikely for almost everyone, but not something that could be completely ruled out.