MBS MID-DAY: Uneventful Morning for Bond Markets

By: Matthew Graham •

Although Treasury yields have been moving in the same direction as stock prices, the magnitude is completely different.  Whereas the S&P is up an impressive 20 points to new all-time highs, Treasury yields are merely on the edge of their weakest levels of the morning, only 1.2bps higher. 

MBS are another degree removed from that negative influence, and have been looking more sideways compared to Treasuries' "slightly weaker." 

There have have been no significant market movers today and there are no significant events on the calendar this afternoon.  Bond markets are biding their time until being more convincingly roused from the slumber connoted by 2.75% 10yr yields and a 104-ish price on Fannie 4.0 MBS. 

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
96-13 : -0-02
FNMA 3.5
100-22 : -0-01
FNMA 4.0
104-05 : -0-01
Treasuries
2 YR
0.3262 : +0.0082
10 YR
2.7463 : +0.0123
30 YR
3.7030 : +0.0070
Pricing as of 2/24/14 12:18PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:52AM  :  Yields Following Stocks Higher; 10's at Weakest Levels, but MBS Outperform
9:14AM  :  Bond Markets Bouncing Back after Slightly Weaker Open
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "RTRS- MARKIT U.S. SERVICES SECTOR FLASH PMI FOR FEBRUARY AT 52.7 VS FINAL 56.7 IN JANUARY"
Christopher Stevens  :  "I am not convinced the weather is having a deleterious effect on the economy. I am of the opinion the economy is not as well off as some are thinking and the weather is just an excuse for #'s coming in below forecasts. The danger is we will still have a NFP# in March that some say will be effected by the weather the week of 2/10-2/14 followed by Fed meeting. I think we will have to wait for the April NFP before the market realizes the weather is not the cause of a poor job market. And w/out jobs the housing market can't really get past a slow idle."
Matt Hodges  :  "CS - great job summarizing what many of us are thinking"
Matthew Graham  :  "there's no question the weather is affecting many of the numbers and there's no question those effects do not account for all the weakness. That's the whole problem: like you, markets aren't willing to exclusively blame the weather, but unlike you, they know it has some effect and must wait to find out how much. That's why we've been in narrow ranges with uninspired trading."
Victor Burek  :  "good article on student loans, http://mndne.ws/1gwrHH6"
Victor Burek  :  "The total outstanding student loan balance is $1.08 trillion, and a whopping 11.5% of it is 90+ days delinquent or in default. That’s the highest delinquency rate among all forms of debt and the only one that’s been on the rise consistently since 2003."
Matthew Graham  :  "RTRS - FED'S FISHER SAYS IN FAVOR OF REDUCING FED BOND BUYING BY $10 BILLION AT EACH POLICY MEETING--FOX BUSINESS"
David Gaffin  :  "GM all. Does anyone know how long a borrower must be residing at a new rental property before their old owner-occ rental income can be considered? Less than 30% equity in departure residence. thx"
Justin Harward  :  "I'm not aware of a specific time. I think once they leave the old residence and THEN apply, they're good"
Christopher Stevens  :  "I did not think you could use rental income if you had less than 30% equity in the conversion of current residence to rental."