MBS RECAP: Modest Gains Despite Data; Still Mostly Sideways and Waiting

By: Matthew Graham •

Last Thursday's gains marked the beginning of the end for the trend toward higher rates from late May.  Friday maintained enough of those gains to confirm the end of the previous trend.

Now today, bond markets have gone almost perfectly sideways just over Friday's best levels, but without breaking above Thursday's.  For all intents and purposes, this means we continue to wait for the next trend to arrive while we get yet another piece of confirmation that the previous trend has ended.

In general, there's painfully little going on in bond markets.  None of today's data  was of much consequence (after all, it was all stronger than expected, yet bond markets are in positive territory).  That could have something to do with geopolitical risks in Iraq, but the level of directly-related market movement is uncertain at best, if not questionable.

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
97-32 : +0-04
FNMA 3.5
102-04 : +0-04
FNMA 4.0
105-12 : +0-04
Treasuries
2 YR
0.4675 : +0.0125
10 YR
2.5988 : -0.0052
30 YR
3.4000 : -0.0120
Pricing as of 6/16/14 3:53PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:03PM  :  MBS Well Off Highs But Reprice Risk is Minimal
10:12AM  :  Bounce Back Pauses After Stronger Homebuilder Sentiment
9:30AM  :  Slightly Weaker After Industrial Production Report
8:55AM  :  Bond Markets Moderately Stronger Overnight; Giving Back Some Gains Now
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Andy Pada, Jr.  :  "yes, we have ADP as a payroll company and they offer that service."
Bromi Krock  :  "anyone ever deal with getting an international credit report?"
Matthew Graham  :  "2.66 for now, and 2.57 on the downside. Once broken, 2.47-2.8, yeah. Much less recent experience near 2.8 though. There are some technical levels around 2.7"
Andrew Haynes  :  "Whats the new range? 2.47-2.8?"
Sung Kim  :  "tsy seems a bit directionless today?"
Brandon Blue  :  "I have this exact issue right now. Problem is that you can't get a new case number for the IRRL until the previous loan has submitted the paperwork for the VA guarantee. VA says the lender has up to 60 days from closing."
dustin mcalister  :  "investor overlays but not VA"
dustin mcalister  :  "yes you can"
Sung Kim  :  "anyone know if i can IRRL 1 day after closing?"