MBS MID-DAY: Bond Markets Weaker as Stocks Bounce Back

By: Matthew Graham •

The trading day has been fairly straightforward so far.  After yesterday's rout in equities markets, we're seeing a nominal bounce back.  Whether that marks a turning point or simply some consolidation ahead of more selling may well be decided by the next 3 days of data.  Whatever the eventual path may be, bond markets are experiencing a similar corrective bounce as they continue to mirror and match movement in equities.

The day's economic data has been inconsequential, as expected.  Most of the day-over-day losses were seen in the overnight session with fairly well contained drifting since then.  Unfortunately, the drift has been toward higher rates, and we're right on the edge of negative reprice risk here at mid-day.

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
97-16 : -0-15
FNMA 3.5
101-21 : -0-12
FNMA 4.0
104-28 : -0-08
Treasuries
2 YR
0.3118 : +0.0078
10 YR
2.6294 : +0.0474
30 YR
3.6002 : +0.0602
Pricing as of 2/4/14 12:23PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:39AM  :  ALERT ISSUED: At Weakest Levels; Right on the Edge of Reprice Risk
9:13AM  :  Bond Markets Slightly Weaker as Stocks Rally
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "RTRS - U.S. FED'S LACKER EXPECTS FURTHER REDUCTIONS IN PACE OF ASSET PURCHASES AT UPCOMING FOMC MEETINGS"
Andy Pada, Jr.  :  "has US Bank become more aggressive on on their conventional and fha pricing?"
Constantine Floropoulos  :  "Sovereign Bank just dropped their conforming loan min fico score to 630 on all occupancies 1-4"
Victor Burek  :  "nice to see some guidelines easing"
Matthew Graham  :  "RTRS- U.S. DEC FACTORY ORDERS -1.5 PCT (CONSENSUS -1.7 PCT) VS NOV +1.5 PCT (PREV +1.8 PCT)"
Sung Kim  :  "stock market looks weak, looks like the cat aint dead yet"
Matthew Graham  :  "or like today's jump is due to the natural springiness of the cat, as opposed to a concerted effort to actually jump? That would make more sense to me."
Andrew Horowitz  :  "maybe if we could have a couple of CDO's go bad we could see a real sell-off"