MBS RECAP: Bond Markets Drift Sideways, Just Slightly Weaker

By: Matthew Graham •

On a negative note, bond markets began the day in slightly weaker territory and lost a bit more ground out of the gate.  This wasn't so much a factor of the morning's economic data, which was boring and inconsequential as much as a one-two punch from stock market positivity and spillover from weak European bond markets. 

Even that much of an assessment is more than today needs considering the positive counterpoint, in that we crossed the 5pm mark with Fannie 4.0s off a meager 1/32nd.  10yr yields were slightly worse off but put in their highest levels of the day just before noon and then went no higher.  Over the past 3 days, it looks as if bond markets were pushed into the weakest territory they were willing to explore by way of correcting from January's impressive rally ahead of tomorrow's NFP.

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
96-28 : -0-07
FNMA 3.5
101-07 : -0-05
FNMA 4.0
104-21 : -0-01
Treasuries
2 YR
0.3235 : +0.0075
10 YR
2.7040 : +0.0360
30 YR
3.6708 : +0.0178
Pricing as of 2/6/14 5:19PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:40AM  :  ALERT ISSUED: Bonds Push Into Weakest Levels at Stock Market Open
9:11AM  :  Bond Markets Weaker, but Reluctantly so
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Mark DeWitt  :  "My cold weather friends: If a vacant REO property has been winterized- would it be a FNMA requirement for the appraiser to verify running water?"
David Moriarty  :  "Mark, selling guide page 589, B4-1.4-07...utilities must be in service."
David Moriarty  :  "had luck once on an REO where the bank had done a property inspection prior to winterizing that showed water was working an uw accepted"
Victor Burek  :  "time for some green on the board"
Matthew Graham  :  "looks like some inherent determination/resilience. Easier to muster with EU closed"
Andrew Haynes  :  "the calm before the storm today?"
Chris Kopec  :  "Mark....have the same issue on a deal of mine....advised seller the water needs to be on and all utilities functioning."
Caroline Roy  :  "what is the lowest fico scores for MI these days?"
Michael Ullmann  :  "CR: dont hold me to this but in the past I found that Radian would give me rates with scores down to 620"
Michael Ullmann  :  "http://mndne.ws/1byZ2Bp"
joon choi  :  "permanent fha mi is only for ltv>90"
Michael Ullmann  :  "JC: is correct at 85% the benefit will be lower mi and no upfront. You dont have to worry about mi for life of the loan."
Michael Ullmann  :  "BS: only customers I put into fha are those with past shorts, bk, etc. I dont ever see the benefit otherwise. Im curious to hear your scenario"
Roger Moore  :  "you mean you don't use FHA more now with the increased funding fee and annual MI? weird"
Economic Calendar
Time Event Period Actual Forecast Prior
Friday, Feb 07
8:30 Non-farm payrolls (k)* Jan 185 74