MBS MID-DAY: MBS Slightly Weaker, Treasuries Slightly Stronger

By: Matthew Graham


The only economic data reported this morning was Import/Export Prices, which gives investors a gauge on inflation. Import prices posted a better than expected drop of only -.5% compared to expectations of a -.7% decline. Export prices posted a worse than expected drop of -.2% vs -.01% expected. The results were close enough to consensus to trigger no response from the bond markets.

MBS and Treasuries opened in opposite directions this morning. MBS are currently down a few ticks from yesterday’s post roll close of 103-06 while the benchmark 10year note is currently down from yesterday’s close of 2.32 to 2.30.

MBS are off their lows by a couple ticks which should eliminate any reprice risk for now. With a 3 day weekend approaching, lenders might be a little more aggressive in repricing for worse if MBS fall below this morning’s low of 103-01.

As a reminder, both the US stock and bond markets will be closed on Monday due to Columbus 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
99-26 : -0-12
FNMA 3.5
103-03 : -0-13
FNMA 4.0
105-29 : -0-13
Treasuries
2 YR
0.4520 : +0.0040
10 YR
2.3120 : -0.0150
30 YR
3.0460 : -0.0170
Pricing as of 10/10/14 11:30AMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:46AM  :  ALERT ISSUED: Negative Reprices Remotely Possible