MBS RECAP: Bond Markets Fall Eerily Silent Following Fed Day

By: Matthew Graham •

Today turned out to be spooky, or at least 'uninformative' from a market-watching standpoint.  Here we have an active trading day following a hotly-anticipated FOMC day and trading levels barely budge.  Historically, these "day after big FOMC Announcement" days can be some of the biggest movers.  The fact that we didn't get anywhere close to that sort of movement today suggests a good amount of uncertainty about the response to recent events.

That might seem like an obvious statement, but it's important in this case because the burgeoning consensus was that the next big market move would be all about the Fed.  Now the Fed has come and gone and markets haven't moved!  Sure, they moved yesterday, but to no weaker levels than those seen 4-5 days ago. 

In addition, economic data has been anything but inspiring.  Markets just don't care.  There were big economic headlines to trade today and they barely produced a noticeable reaction in bond markets.  Moreover, those reactions were reversed shortly thereafter. 

So while we wait for some form of trading leadership to emerge from this current limbo, we can at least take heart in the fact that bond markets closed at slightly stronger levels today.  MBS began the day in weaker territory, but took baby steps back up by 5pm, ultimately gaining 3/32nds over yesterday's latest levels.

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
97-25 : +0-03
FNMA 3.5
101-18 : +0-00
FNMA 4.0
104-28 : -0-01
Treasuries
2 YR
0.5650 : +0.0090
10 YR
2.6180 : +0.0180
30 YR
3.3490 : -0.0160
Pricing as of 9/18/14 5:01PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
8:49AM  :  Bond Markets Slightly Weaker After Mixed Econ Data
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matt Hodges  :  "we've successfully challenged a VA appraisal...gave them better comps. VA often drives a distance and may not be familiar with MSA they are appraising"
BIll Zigler  :  "cvgc.vbapho@va.gov - Appraisal Dispute = good luck - the A in VA stands for Appraiser"
Clay Schmeisser  :  "Anyone know how to throw out a terrible VA appraisal? Appraiser didn't use a recent sale and also checked the declining market box on the appraisal when we are NOT in a declining market at all"
Travis Waters  :  "2 year history is required. get tax returns and unemployment 1099's. We are able to use the unemployment income towards qualifying. "
Tim Robinson  :  "You have a 3 year history, as along as it can be explained and it's not some bizarre seasonal thing"
Travis Waters  :  "Hugh, i have done seasonal for both"
Hugh W. Page  :  "Okay back to originating so no one has worked with a seasonal employee successfully on a Conv/Conf or FHA loan?"
Sergio Szyrko  :  "Anybody else craving green lately?"