MBS RECAP: Worst day of Losses Since November 8th

By: Matthew Graham •

Nothing new happened all day long.  Unfortunately, the order of the day was a steady selling spree in MBS and Treasuries--easily the worst we've seen since November 8th.  The severity was amplified by the fact that bond market technicals were just reaching the limits of what we discussed yesterday morning as "room to run."  This occurred simultaneously with the first major bounce in the global market response to geopolitical risk in Ukraine. 

As expected, Treasuries suffered more than MBS with 10yr's down 26/32nds in terms of price (up 9.3bps in terms of yield) compared to only 18 ticks of weakness in Fannie 4.0.  There was no significant economic data or even any other relevant market moving events--just a long, determined, linear momentum shift back in the other direction. 

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
96-23 : -0-24
FNMA 3.5
101-00 : -0-21
FNMA 4.0
104-17 : -0-17
Treasuries
2 YR
0.3330 : +0.0240
10 YR
2.7013 : +0.0933
30 YR
3.6491 : +0.0911
Pricing as of 3/4/14 4:40PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:48PM  :  ALERT ISSUED: Ongoing Negative Reprice Potential
12:20PM  :  ALERT ISSUED: Selling Pressure Persists; Negative Reprice Risk Remains
10:03AM  :  ALERT ISSUED: Negative Reprice Risk Increasing As Bond Markets Swoon
9:46AM  :  ALERT ISSUED: MBS Hit Session Lows; Reprice Risk is Low but not Absent
9:13AM  :  Vladimir Putin's Morning Market Call (Not Bad!)
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Scott Rieke  :  "Did everyone see the new VA circular? They are messing with VA max loan amounts in some areas"
Scott Rieke  :  "http://mndne.ws/1f2qAfY"
Curt Sandfort  :  "ever heard of NOT being able to roll in the current months mortgage payment on a refi? Just got that back on an approval."
Bryce Schetselaar  :  "some lenders only allow 30 days interest on payoff...if that is what you are asking"
Chris Kopec  :  "Russia hold 138B in US debt, and threatened to dump it if sanctions follow. That's what I think is driving the selloff."
Matthew Graham  :  "a country with the financial clout of Russia threatening to sell every last dollar they hold of US debt is like the state of North Dakota vowing to never use Google as a search engine in order to punish Google for something or other. "
Victor Burek  :  "well said mg"