MBS MID-DAY: Morning Gains Fading Into Afternoon

By: Matthew Graham •

The day began with modest improvements, helped along by tough talk from ECB President Draghi.  While the timing of the best movement seems to coincide with the 8:30am Jobless Claims data, it was mostly to do with Draghi.

More importantly, it was mostly a non-issue.  Even as Treasury yields stretch up to their highs of the day presently, we remain range-bound, well inside yesterday's highs and lows (albeit closer to the highs).  MBS are a bit less interested in the volatility--not uncommon on "roll" day (Fannie and Freddie 30yr Fixed MBS Settlement coming up on Monday and today is the last day to trade January coupons, hence "rolling" to February's tonight).

Jobless Claims wasn't likely to be a market mover today.  Even the small amount of Draghi-related movement was a surprise.  In hindsight, it looks like US bond markets took a brief detour at the request of European markets and are now back to yesterday afternoon's micro-range.

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
94-30 : -0-04
FNMA 3.5
99-15 : -0-02
FNMA 4.0
103-05 : -0-02
Treasuries
2 YR
0.4332 : +0.0042
10 YR
2.9988 : +0.0058
30 YR
3.9030 : -0.0020
Pricing as of 1/9/14 12:01PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:36AM  :  Bouncing Against Negative Reprice Risk Levels For Some
9:08AM  :  Treasuries Slightly Stronger, MBS Unchanged After Jobless Claims, Draghi
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Christopher Stevens  :  "Yellen on cover of Time http://mndne.ws/1abgmbQ"
Victor Burek  :  "nothing really matters til tomorrow"
Matthew Graham  :  "RTRS- US JOBLESS CLAIMS FELL TO 330,000 JAN 4 WEEK (CONSENSUS 335,000) FROM 345,000 PRIOR WEEK (PREVIOUS 339,000) "
Matthew Graham  :  "RTRS- YELLEN SAYS EXPECTS A FURTHER RECOVERY IN HOUSING MARKET - TIME "
Victor Burek  :  "The Department of Labor states that there is no indication that the winter storm affected this week's numbers "
Ray Leone  :  "Today feels like playing scrimmage before the big game, tomorrow."
Ray Leone  :  "And the opposing team has a big secret play that they are not sure will work or not, but they will not tell us about it until the match begins."