MBS MID-DAY: Bond Markets Modestly Weaker; MBS Outperforming

By: Matthew Graham •

It's been a mostly uneventful morning so far, at least for MBS.  Overnight trading was generally supportive thanks to weaker PMIs abroad, Moody's cutting Japan's debt rating, falling oil prices, and tepid retail sales estimates from the holiday weekend. 

That led to stronger opening levels for MBS and Treasuries, but 8am marked the best levels of the day.  After an attempt to rally back to opening levels into the 10am hour, bonds are losing ground, though MBS are outperforming.

That means Fannie 3.5s and 3.0s are carving out a more narrow and stable range compared to Treasuries.  10yr yields rose after what could only be considered a 'decent' ISM Manufacturing report, eventually moving a few bps into negative territory by mid-morning. 

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
101-06 : -0-02
FNMA 3.5
104-09 : -0-01
FNMA 4.0
106-28 : +0-02
Treasuries
2 YR
0.4760 : +-0.0004
10 YR
2.1900 : +0.0172
30 YR
2.9190 : +0.0256
Pricing as of 12/1/14 12:01PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:52AM  :  Bond Markets Under Gradual Pressure Following ISM Data
9:05AM  :  Bond Markets Slightly Better than 'Unchanged,' but That's an Accomplishment
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Nathan Miller  :  "actually that included wed morn gains, fri we only got .125, today a .25, so right where MG has it around 375 to price, only fha really gained"
Matthew Graham  :  "but among lenders who actually passed on some of the gains earlier. I know many did not."
Matthew Graham  :  "seeing about 30bps"
Nathan Miller  :  "maybe .50-625 better here, FHA it easily over 100bps better though"
Gus Floropoulos  :  "better, but not across the board, especially in 15 yr. I think confirmation this week will accelerate the spreads"
Kenneth Crute  :  "from wednesday nearly 100 bps "
Sung Kim  :  "How do rate sheets look compared to last wed ? Anyone know!"
John Tassios  :  "So far, friday's gains are holding"
John Sheadel  :  "today should be a good day for rates"