MBS RECAP: Bond Markets Erased Friday's Losses Early and Never Looked Back

By: Matthew Graham •

Bond markets were in the throes of a late overnight session rally by the time the domestic session began.  The rally began at 6:30am Eastern time and continued steadily, with no regard for economic data, until 9am.  The day essentially ended there as trading levels never got any better, but didn't lose enough ground to matter.

10yr yields held a range from 2.479 to 2.495 from 9am on.  Fannie 3.5 MBS stayed between 102-09 and 102-13. 

In many ways, today's rally simply gets bonds back on track with the rally that's been underway for more than a week.  Today's trading range is a logical extension of Friday's early trading range before the news hit regarding Bill Gross's PIMCO exit.  It wouldn't necessarily have to be any more complicated than that, but if you want it to be, there is a list of other considerations on the Mid-Day commentary.

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
98-23 : +0-06
FNMA 3.5
102-10 : +0-04
FNMA 4.0
105-15 : +0-03
Treasuries
2 YR
0.5750 : -0.0120
10 YR
2.4810 : -0.0540
30 YR
3.1680 : -0.0480
Pricing as of 9/29/14 4:50PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:12AM  :  Multiple Factors Conspire to Boost Bonds; Approaching 3-week Highs
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Andy Pada, Jr.  :  "i have the problem all the time regarding higher priced mortgage loans despite the credit; credit doesn't help"
Ted Rood  :  "I've never seen a credit reflected in the APR."
Sung Kim  :  "page 3 loan app credits clearly dont affect APR, but you are saying that if i put in a credit for interest rate, it does not affect AP?"
Andy Pada, Jr.  :  "yeah, credits do not affect APR"
Sung Kim  :  "i am confused OO, you are saying that 802 credits are not considered in APR?"