MBS MID-DAY: Bond Markets Back in Positive Territory

By: Matthew Graham •

After an uneventful overnight session, MBS and Treasuries both began the day in moderately stronger territory, but only when compared to Friday's latest levels.  Compared to the entire previous trading day, today continues to trade "inside" the highs and lows.

MBS are closer than Treasuries to breaking out of these respective inside days, but that's only an observation about current trading levels.  There's no clear trend emerging other than "sideways" in Treasuries coupled with outperformance in MBS.

In that regard, trading is lining up well with the calendar, considering the calendar is empty in terms of potential market movers.  MBS roll tomorrow and the demand for February coupons to deliver vs the supply may be a factor in the outperformance.

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
97-10 : +0-05
FNMA 3.5
101-22 : +0-05
FNMA 4.0
105-04 : +0-06
Treasuries
2 YR
0.3073 : +0.0003
10 YR
2.6729 : -0.0021
30 YR
3.6648 : +-0.0002
Pricing as of 2/10/14 11:58AMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:21AM  :  Treasuries Weaker, MBS Stronger as Domestic Session Lurches Forward
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Benjamin Biscoe  :  "hey guys, anyone ever heard of anything like this. i got an email from an agent i have worked with and another lender had sent him this: "Great News!!! I have a program that allows a Seller of a Short Sale to simultaneously close on a new or resale home with no waiting period!! This opens the market for more Purchase business!!! Conventional is typcally 4 years seasoning and FHA is typically 2 years! I have an investor that will WAIVE the waiting period if your buyer meets the criteria!" Dont know anyone that will do that. "
Jason York  :  "FHA with no lates during the shortsale has no waiting period"
Scott Valins  :  "if I have a VA eligible borrower who bought a fixer upper in the name of his LLC (he and sister 50/50 LLC owners) and he wants to keep property and live in it would this be a purchase deal or refi?"
Dan Clifton  :  "MG what is the disconnect today between TSY and MBS?"
Matthew Graham  :  "could be lack of supply heading into settlement DC, or simply the fact that MBS tend to perform slightly better coming out of NFP as it resolves some latent uncertainty. Could also be that MBS have just been moving wider all year and finally look like they hit some support for spreads."
Ira Selwin  :  "http://mndne.ws/1bERf20 - Page 191"
Steve Sims  :  "Ah Ira is right, there you go. The loan being refinanced and the title to the property are in the name of a natural person or a limited liability company (LLC) as long as the borrower was a member of the LLC prior to transfer. Transfer of ownership from a corporation to an individual does not meet the continuity of obligation requirement."
William McGuirt  :  "a lot of red on the pricing sheets this am "