MBS RECAP: Slow, Steady Gains for Bond Markets

By: Matthew Graham •

Very little has changed between now and the mid-day update (read that HERE if you like).  To recap, bonds started the day roughly in line with yesterday's latest levels and made gradual improvements throughout the day.  That was more true for MBS than for Treasuries though.  10yr yields were locked in more of a sideways range in the morning hours and never really broke it until after the 3pm close.  MBS saw more consistent improvement, albeit at a gradual pace.

Data was disregarded, with the possible exception of some volatility after Chicago PMI.  There were no noticeable reactions to headlines.  In general, bonds just marched to their own beat, which is not uncommon on a month-end trading day.  It was a good week, though not phenomenal--about the least we could ask for after the previous 3 weeks.

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
101-29 : +0-09
FNMA 3.5
104-27 : +0-09
FNMA 4.0
106-31 : +0-08
Treasuries
2 YR
0.6260 : -0.0280
10 YR
1.9960 : -0.0350
30 YR
2.5920 : -0.0400
Pricing as of 2/27/15 4:58PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:32AM  :  Quick Heads-Up: Reprice Risk Ebbs as Bonds Keep Fighting
10:15AM  :  ALERT ISSUED: Sadly, There's Already Reprice Risk
9:52AM  :  Bonds Bounce Back After Overnight Weakness; GDP a Non-Event; Chi PMI Helps
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Michael Steren  :  "Just received the notice from our vendor - "As you may be aware, the IRS is operating at the lowest level of funding since 2008, and the lowest since 1998 when inflation is considered. All areas of the IRS are affected by the difficult choices these budget cuts have forced us to make. We recognize the importance of providing timely IVES products to you and your customers. We will continue to expedite IVES service and make every effort to handle your requests as quickly as possible. However, you may experience a longer turnaround time than in the past.""
Michael Steren  :  "Anyone hear of an IRS bulletin that 4506/tax transcript turn times are going to be significantly longer for 2015 due to budget cuts?"
Alan Craft  :  "I've heard that before"
John Tassios  :  "Fischer also mentioned FED to raise rates sometime this year"
Matthew Graham  :  "RTRS- FED'S FISCHER SAYS CENTRAL BANK ASSET PURCHASES CONTINUE TO PROVIDE MEANINGFUL ECONOMIC STIMULUS"
Dave Rosenthal  :  "To anyone looking on VA requirements here is the site to go to: http://mndne.ws/1BgLqFu"
Dave Rosenthal  :  "JH, well water on all VA files; but you only need what the local health authority requires"
Jason Harris  :  "well water needed on all VA files? or is there a trigger (ie appraiser comments)"