MBS RECAP: Uneventful Trading Day Leaves Bonds Slightly Stronger

By: Matthew Graham •

The week got off to a woefully uneventful start.  Like many Mondays in terms of trading activity, this one may as well not have happened.  The only somewhat notable achievement is that Treasuries managed to battle back from small overnight losses to go on to a permanently 'green' day.  MBS got to come along for the ride, as per usual.

Overnight motivation came from weaker economic data out of Germany with part of the torch passed to domestic equities markets later in the morning.  Actually, it's not so much that parts of the market were clearly leading and following as much as all markets were simply moving together out of boredom and a lack of participation. 

We can't really draw any conclusions about such a day.  As we've observed in the past, these sorts of Mondays amount to unofficial 3-day weekends.  Whether that means tomorrow offers anything more meaningful remains to be seen.  Either way, it's safe to assume that any early-week apathy is a nod to Wednesday's clearly-important FOMC Announcement.

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
100-13 : +0-04
FNMA 3.5
103-20 : +0-05
FNMA 4.0
106-10 : +0-04
Treasuries
2 YR
0.3820 : -0.0038
10 YR
2.2590 : -0.0068
30 YR
3.0370 : -0.0038
Pricing as of 10/27/14 4:33PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:14AM  :  Modest Gains This Morning After Overnight Weakness
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Kenneth Crute  :  "not stable or don't give them a loan, I don't want to have to find another tenant ...."
Timothy Baron  :  "Plus, I'm pretty sure it's my underwriter's job to determine if they are financially stable, not his."
Timothy Baron  :  "Some landlords are awful, JPM. We recently got a VOR with comments about how the tenants had multiple late payments are not financially stable. When asked how many 30 day lates they had the landlord said none. He had been referencing the fact that they were a week or two late a few times. "
John Paul Mulchay  :  "small burn on carpet from an iron and they replaced carpet throughout the unit and charged the tenant. "
John Paul Mulchay  :  "Gotta love VOR comments"outstanding balance was not paid and sent to collections at the end of July." Never contacted tenant to request/demand payment and shot straight to collections. Weak."
Matt Hodges  :  "http://mndne.ws/1aZeTKN"
Sung Kim  :  "fannie mae allows children to purchase a property for their parents if the parents do not qualify on their own. it's a straight purchase"
Ted Rood  :  "kids purchasing home for elderly parents who can't qualify on their own? That would be a Fannie deal."