MBS MID-DAY: Bond Markets Disregard Data, Hold Steady Ahead of Fed

By: Matthew Graham •

Treasuries and MBS are both near their weakest levels of the day, but remain in slightly better shape than yesterday's latest levels.  The strongest part of the day came just before the cash open in stocks.  MBS were up just over a quarter of a point before surging stocks applied some pressure on bond markets.

The morning's economic data was generally disregarded.  Housing Starts/Building Permits data was quite a bit weaker than expected but Treasuries/MBS barely budged.  This is yet another tacit suggestion that markets are willing to disregard economic data misses until a clearer picture of the weather-related impact develops. 

FOMC Minutes coming up at 2pm.

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
96-24 : +0-03
FNMA 3.5
101-01 : +0-04
FNMA 4.0
104-14 : +0-03
Treasuries
2 YR
0.2984 : -0.0046
10 YR
2.6925 : -0.0175
30 YR
3.6734 : -0.0066
Pricing as of 2/19/14 12:19PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:05PM  :  ALERT ISSUED: MBS at Lows; On the Edge of Negative Reprice Risk
8:58AM  :  Bond Markets Stronger Overnight, Unchanged After Data
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "big miss on housing"
Matthew Graham  :  "RTRS- US JAN HOUSING STARTS -16.0 PCT, BIGGEST DROP SINCE FEB 2011, VS DEC -4.8 PCT (PREV -9.8 PCT)"
Matthew Graham  :  "RTRS- US JAN HOUSING STARTS -16.0 PCT, BIGGEST DROP SINCE FEB 2011, VS DEC -4.8 PCT (PREV -9.8 PCT)"
Matthew Graham  :  "RTRS- US JAN HOUSING PERMITS 937,000 UNIT RATE (CONSENSUS 980,000) VS DEC 991,000 UNIT RATE (PREV 991,000 UNITS)"
Oliver Orlicki  :  "what are the seasoning requirements for a rate and term refi?"
Matthew Graham  :  "1-day, +overlays +EPO considerations"
Nathan Miller  :  "have to be on title 6 months for cash out otherwise no seasoning OO"
Matt Hodges  :  "and, EPO on correspondent side is when the loan is funded back to correspondent, not close date"
Oliver Orlicki  :  "any insight on a borrower who went through consumer credit counseling?"
Alan Craft  :  "It used to be treated just like Ch 13"
Kent Mikkola, NMLS 353976  :  "From the 4155 : Participating in a consumer credit counseling program does not disqualify a borrower from obtaining an FHA-insured mortgage, provided the lender documents that  one year of the pay-out period has elapsed under the plan  the borrower’s payment performance has been satisfactory and all required payments have been made on time, and  the borrower has received written permission from the counseling agency to enter into the mortgage transaction."