MBS MID-DAY: Grinding Sideways to Slightly Weaker With Little Regard for Events

By: Matthew Graham •

While there have been several economic events in the overnight and domestic sessions that seemingly imparted some momentum, bond markets are better described as simply correcting from yesterday's rally.  The following chart appeared in the morning update on MBS Live.  Keep in mind, any of today's events that are possibly affecting bond markets are all doing so within that tiny range between the teal lines. 

In other words, forget the data and events.  Markets are moving for technical reasons and for positioning.  Yesterday saw a low-volume, illiquid snowball rally to the lowest rates in the range and everything since then has been a modest correction.

As has been the perennial case, MBS are holding up better than Treasuries today as Treasuries rallied harder than MBS yesterday.  Fannie 3.0s are off about an eighth of a point and haven't gone outside a 3/32nds range since rate sheets came out.

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
102-31 : -0-04
FNMA 3.5
105-11 : -0-03
FNMA 4.0
106-29 : -0-01
Treasuries
2 YR
0.5240 : +0.0590
10 YR
1.7600 : +0.0410
30 YR
2.3210 : +0.0330
Pricing as of 1/29/15 12:45PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:28AM  :  5yr Auction Preview
9:34AM  :  Bond Markets Pulling Back From Yesterday's Snowball Rally
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jason York  :  "you can have up to 10 props, but I think to get cashout on a NOO, the limit is 4"
Gus Floropoulos  :  "I thought 10 was the max on FNMA"
Jason York  :  "Ira, I'm pretty sure you can't do a cashout refi on an NOO if over 6 properties are owned"
Ira Selwin  :  "anyone able to do 6 financed properties, invest, c/o, owned OVER six months (Fannie says within six)"
Jason Harris  :  "principal plus interest on the payoff plus ufmip "
Justin Dudek  :  "Is there a uniform calculation for FHA streamline loan amount?"
Matthew Graham  :  "must be temporary hiring for CNN weather crew"
Matthew Graham  :  "RTRS- US CONTINUED CLAIMS FELL TO 2.385 MLN (CONS. 2.420 MLN) JAN 17 WEEK FROM 2.456 MLN PRIOR WEEK (PREV 2.443 MLN)"
Matthew Graham  :  "RTRS - US JOBLESS CLAIMS FELL TO 265,000 JAN 24 WEEK, LOWEST SINCE APRIL 2000 (CONSENSUS 300,000) FROM 308,000 PRIOR WEEK (PREVIOUS 307,000)"
Gilbert Denizard  :  "for continuity of obligation, if the borrower is also an owner of the LLC that time counts"
Mike Drews  :  "Here's the link,,i'm running into this 6 month seasoning rule"
Mike Drews  :  "http://mndne.ws/1pBGTqV"
Spencer Packer  :  "That was my understanding as well."
Jason Harris  :  "Maybe I am wrong but I thought that if borrower was sole owner of LLC that there was no issue with continuity"
Mike Drews  :  "anyone have any work arounds for continuity of obligation..other than retitling the property in his name and waiting 6 months?..Buyer purchased in LLC (100% owner)last month and wants to do a R&T refi"