MBS RECAP: Choppy Morning Gives Way to Afternoon Reprices

By: Matthew Graham •

Bond markets took their own sweet time getting back to business after the holiday weekend.  Trading activity was lighter than normal and apart from the morning's first round of economic data, market movements were based more on inbound trades rather than data and headlines.

MBS began the day unchanged and promptly lost an eighth of a point after stronger Durable Goods data.  Just as promptly, prices bounced back and then some, following a technical bounce in Treasuries. 

After another round of selling and bouncing, both Treasuries and MBS finally settled in for a disjointed afternoon rally that now looks like it will leave MBS at their best closing levels since October.  More than a few lenders released positive reprices, but in general, fewer than you might expect given the price gains.

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
98-18 : +0-06
FNMA 3.5
102-24 : +0-07
FNMA 4.0
105-24 : +0-05
Treasuries
2 YR
0.3505 : +0.0045
10 YR
2.5160 : -0.0180
30 YR
3.3633 : -0.0347
Pricing as of 5/27/14 3:44PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:42PM  :  Positive Reprices More Likely as MBS Extend Gains
1:08PM  :  MBS holding Best Levels; Treasury Auction a Non-Issue
11:02AM  :  Even Faster Than it Arrived, Weakness Evaporates
10:43AM  :  ALERT ISSUED: Back into Weaker Territory After Data, Draghi, and Stock Open
9:33AM  :  Bond Markets Back to 'Unchanged' Ahead of Confidence Data
8:44AM  :  Bond Markets Weaker After Durable Goods Data
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Steve Chizmadia  :  "Cash out on a NOO with more than 4 properties financed, which investors do you all start with?"
Ted Rood  :  "Freddie direct, I believe, Chiz."
Steve Chizmadia  :  "My Freddie direct guides state "Unlimited number of properties may be owned, but only 4 (including their Primary Residence) may be financed.""
Andy Pada, Jr.  :  "102-22 the new high?"
Jason Anker  :  "Oct 29th 102-23 - thats most recent higher price"