MBS MID-DAY: Friday's Gains Mostly Intact Despite Stronger Home Sales Data

By: Matthew Graham •

MBS have managed to hold on to most of their gains seen on Friday, even after Existing Home Sales came in stronger than expected.  Prices were higher earlier this morning. 

Treasuries set an upbeat tone after 10yr yields moved 2-3bps lower overnight.  Fannie 3.5s opened higher as a result and were as high as 102-16 before the morning's economic data. 

A combination of slightly stronger Manufacturing data (Markit PMI, as opposed to the drastically more important ISM PMI) and slightly stronger Existing Home Sales made for only a slight bump lower in MBS (eighth of a point).  Since then, the losses haven't accelerated, keeping reprice risk in check for now.

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
98-04 : -0-01
FNMA 3.5
102-12 : +0-00
FNMA 4.0
105-23 : +0-00
Treasuries
2 YR
0.4644 : +0.0004
10 YR
2.6007 : -0.0233
30 YR
3.4210 : -0.0310
Pricing as of 6/23/14 12:28PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:11AM  :  Bond Markets Weaker After Existing Home Sales
8:55AM  :  Bond Markets Slightly Stronger Overnight; Range Remains Intact
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
John Rodgers  :  "local banks. We have one here that will go to 95 and higher with relationship"
Nathan Stotlar  :  "Key Bank"
dustin mcalister  :  "this question is asked as a customer and not an originatior, who are some lenders with higher CLTV limits for home equity loans/lines of credit? looking for myself. "
Matthew Graham  :  "RTRS - US MAY EXISTING HOME SALES +4.9 PCT VS APRIL +1.5 PCT (PREV +1.3 PCT)-NAR"
Matthew Graham  :  "RTRS- US MAY EXISTING HOME SALES 4.89 MLN UNIT ANNUAL RATE (CONSENSUS 4.73 MLN), VS APRIL 4.66 MLN (PREV 4.65 MLN)-NAR"
Hugh W. Page  :  "$200K Sales Price you're looking at a monthly payment savings of like $23 a month initially."
Hugh W. Page  :  "And 3 different counselings required. That will be fun to administer."
Christopher Stevens  :  "Me either. I thought the counseling was going to be free. If there is a cost not sure consumers will do it as with lower loan sizes not sure people will see the time worth the savings. "
Hugh W. Page  :  "Thanks for sharing CS. This new HAWK program doesn't look all that exciting to me I have to say."
Christopher Stevens  :  "A good read for those that have not already seen it http://mndne.ws/1m4PIpB"