MBS RECAP: Mostly Slow Despite Data; Weaker in Afternoon; Still in the Range

By: Matthew Graham •

Behind the scenes, bond market activity was very light today--not uncommon for Mondays and most Friday's during the summer months.  In the morning, the lack of participation was inconsequential as the smaller amount of trading was well-balanced at just slightly stronger levels.  That enabled MBS to maintain most of Friday's gains even after stronger-than-expected economic data.

The light volume allowed the afternoon to quickly get out of balance in favor of sellers.  There were several 'suspects' in play just before the weakness arrived, but none worth putting under a microscope while bond markets remained so squarely inside their recent range.

MBS Prices fell enough that most lenders repriced negatively, but remained above Friday morning's levels.  Tomorrow is a busy data day, even if lacking in big-ticket events.  Both main home price reports are out at 9am with New Home Sales and Consumer Confidence out at 10am.  The afternoon kicks off the week's Treasury auctions.

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 : -0-08
FNMA 3.5
102-04 : -0-08
FNMA 4.0
105-15 : -0-08
Treasuries
2 YR
0.4684 : +0.0044
10 YR
2.6261 : +0.0021
30 YR
3.4532 : +0.0012
Pricing as of 6/23/14 5:47PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:17PM  :  ALERT ISSUED: If you Haven't Seen a Reprice Yet, You Probably Will
2:55PM  :  ALERT ISSUED: Negative Reprices Increasingly Likely
2:36PM  :  ALERT ISSUED: Slowly, Steadily, Negative Reprice Risk is Increasing
10:11AM  :  Bond Markets Weaker After Existing Home Sales
8:55AM  :  Bond Markets Slightly Stronger Overnight; Range Remains Intact
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Frank Hanna  :  "http://mndne.ws/1qF2Edg : a relative, defined as the borrower’s spouse, child, or other dependent, or by any other individual who is related to the borrower by blood, marriage, adoption, or legal guardianship; or "
Jason Anker  :  "from 09 i think"
Jason Anker  :  "there is a mtgee letter on that topic"
Sung Kim  :  "sounds inaccurate unless the blood relative is not part of the loan on the receipt?"
Frank Hanna  :  "that is inaccurate"
John Paul Mulchay  :  "Just told that sister in law cannot give gift of equity. Input please?"
Sung Kim  :  "what if the land is leasehold, still would show as mortgage"
Ted Rood  :  "coded wrong. Might be fun getting that fixed on the credit report."
tim paxton  :  "interesting scenario I have run into.... mobile home purchased and delivered to a property where the borrower paid rent to have it there ( never owned the land ) took it down in a BK but the lender shows it as a MTG....thought you had to own land and home to be a mortgage? Winnebago is not a MTG...."