MBS RECAP: Despite Slight Weakness, Bond Markets Break Losing Streak

By: Matthew Graham •

Heading into the last few hours of the day, MBS are only off 1 tick from yesterday's latest levels, but unlikely to make it back to yesterday's highs.  That's OK!

We're still left with the week's most important victory which is confirmation that the selling-spree from late May is over.  Of course there's no way to know if the next trend will be weaker as well, but at the very least, putting an end to one negative trend is preferable to remaining inside that negative trend.  It at least provides a chance to do something else.

This confirmation comes courtesy of yesterday's strength and today's absence of significant weakness.  That wasn't as clear this morning as bond markets got off to a rocky start, but at the day progressed, yields dropped, MBS inched toward unchanged territory, and most lenders released positive reprices. 

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
97-29 : +0-01
FNMA 3.5
102-00 : -0-01
FNMA 4.0
105-07 : +0-01
Treasuries
2 YR
0.4513 : +0.0283
10 YR
2.6006 : +0.0146
30 YR
3.4117 : +0.0027
Pricing as of 6/13/14 3:22PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:11PM  :  More Positive Reprice Potential as MBS Break to Best Levels
10:53AM  :  Empire Strikes Back! (Except Empire = Bond Markets)
9:49AM  :  Why are Bond Markets Giving Back Yesterday's Gains?
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Patrick McCarroll  :  "Right on MG. Try to use it at times assessing our teams "float" stance. Its a good tool on short term locks at times as it's held pretty steady for two weeks and verifies what you're betting against when floating short term locks. I do love this place. "
Matthew Graham  :  "your assessment of the trend and what constitutes a break is right on PM, but MBS aren't the best subjects for technical analysis--at least not when they've been holding such a steady gap to Treasuries for so long. 2008-2009, even late 2012, all different stories."
Patrick McCarroll  :  "Been here for a long time and learning as I go. Seems we've been on a downward trend since May 29th and the current ceiling of that trend is 101-29 so any close above that would be positive....unless I'm drawing that wrong. "
Jason Anker  :  "i wonder if 20 yr calc included huge payouts to the givt or not?"
Jason Anker  :  "sucking off every pennie in profit of the past 4 years didnt help with that I would guess"
Christopher Stevens  :  "20YRS to recapitalize the GSE's? http://mndne.ws/1oXPBS5"
Steve Chizmadia  :  "I'd like to go into the weekend at or over 102 on the 3.5. Is that too much to ask?"
Andy Pada, Jr.  :  "pretty much where we started the week."