MBS RECAP: Volatility Inside The Range (Again)

By: Matthew Graham •

As has been necessary since the beginning of June, any volatility we experience during the day is forced to occur within 'the range.'  That was the case again today.

After yesterday's fairly quick late-day sell-off, bond markets came out of the gate stronger in today's session.  Ebbing home price data didn't stand in the way of further improvements in the morning, but neither did they inspire any real movement. 

The 10am data was better suited to provide some motivation.  Significantly stronger New Home Sales data sent bond markets toward weaker territory, but due to yesterday's late weakness, they never officially crossed the line. 

It wasn't until the afternoon when headlines began circulating on a Syrian air strike in Iraq that rates and equities moved lower together in more-or-less a classic flight to safety (albeit on a small scale). 

10yr yields never challenged the 2.57 range boundary and Fannie 3.5s never made it above yesterday morning's highs.  That said, most lenders saw enough gains to offer positive reprices by the end of the day.

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
98-09 : +0-12
FNMA 3.5
102-14 : +0-10
FNMA 4.0
105-23 : +0-08
Treasuries
2 YR
0.4604 : -0.0036
10 YR
2.5791 : -0.0419
30 YR
3.3991 : -0.0479
Pricing as of 6/24/14 4:33PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:23PM  :  ALERT ISSUED: Bond Markets Bounce Back Around 2yr Auction; Positive Reprice Potential
10:11AM  :  ALERT ISSUED: Bond Markets Falling After Stronger Data; Negative Reprice Risk
9:36AM  :  Bond Markets Stronger Overnight; Building on Gains This Morning
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Nathan Miller  :  "we priced out .25-worse this morning, time for secondary to kick down!"
Matthew Graham  :  "RTRS - U.S. SELLS $30 BLN 2-YEAR NOTES AT HIGH YIELD 0.511 PCT, AWARDS 84.27 PCT OF BIDS AT HIGH "
Sung Kim  :  "plenty of investors allow up to 10 subject to Fannie guides"
Patrick McCarroll  :  "Fannie allows up to 10 financed properties. You simply have to find a way of sending it Fannie Direct and avoiding investor overlays. "
Stewart Anderson  :  "Does anyone know if it's possible to do a Cash-Out on an investment property when the borrower has more than 5 financed properties?"