MBS MID-DAY: Choppy, Sideways Range, Little-Changed From Friday

By: Matthew Graham

The week is off to a fairly anticlimactic start, belying the initial volatility seen after the Greek elections early in the overnight session.  10yr yields have traded a respectably wide range of 1.75 to 1.84 overall, but only made it as low as 1.799 during domestic hours so far.  The bounce back into weaker territory is primarily a factor of steadily weaker trading levels in Eurozone bond markets and, to a lesser extent, a bounce back in equities markets after tanking out of the gate in overnight futures trading.

Apart from the tradeflow reaction to Greek elections, we haven't seen any salient market movers so far today, and there are no high-probablity events on the calendar.  From a technical perspective, 10yr yields bounced nicely at 1.84, and that continues to be a line in the sand we'd watch as an indication of a potential shift in momentum.  102-16 continues to be a good analogous level in Fannie 3.0s.


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
102-22 : -0-02
FNMA 3.5
105-05 : -0-01
FNMA 4.0
106-26 : -0-02
Treasuries
2 YR
0.5150 : +0.0250
10 YR
1.8100 : +0.0209
30 YR
2.3780 : +0.0127
Pricing as of 1/26/15 1:06PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:48AM  :  ALERT ISSUED: Bonds Markets Move Quickly Testing Support as Stocks Bounce; Negative Reprice Threshold Reached
10:00AM  :  Bond Markets Regaining Footing After Volatile Overnight Session

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "From what I understand, they already did"
Sung Kim  :  "any updates on Greece? do they need to form a coalition?"
Jason York  :  "MU, use this: http://mndne.ws/1qtzoVs"
Steve Chizmadia  :  "yes MU"
Michael Ullmann  :  "VA guys/gals out there, if I have a borrower buying in a county with a 417k limit. If they want to buy a home for say 517k their minimum down would be 25K? they only put up 25% of the difference between county limit and what they are purchasing?"
Matthew Graham  :  "REUTERS POLL-11 OF 19 TRADERS SAY ECB QE ENOUGH TO BRING INFLATION UP TO TARGET"