MBS RECAP: Bonds Opt to Hold Ground After Morning Data Volatility

By: Matthew Graham •

Yesterday afternoon's latest levels in 10yr yields were right around 2.13.  This morning's pre-data highs (just before 7am) were also right around 2.13.  And after the data imparted it's volatile spin on trading levels, yields topped out yet again right around 2.13.  Long story short, bonds continue biding their time ahead of tomorrow's ECB and Friday's NFP.

If we got any clues about what's important, NFP is clearly a candidate based on the way markets reacted to today's data.  It was arguably the employment component of the ISM Services data that did damage to bond markets at 10am as it was the only real positive standout in the report.  Without that, ISM was weak, and not-at-all worthy of causing the quick sell-off that it did.  Fortunately that sell-off arrived after the ADP numbers helped bonds start the day off in stronger territory, thus leaving us fairly neutral by the end of the day.

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
101-12 : +0-02
FNMA 3.5
104-15 : +0-04
FNMA 4.0
106-22 : +0-04
Treasuries
2 YR
0.6590 : -0.0232
10 YR
2.1190 : -0.0030
30 YR
2.7190 : +0.0020
Pricing as of 3/4/15 4:44PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:23AM  :  ALERT ISSUED: Under Pressure After ISM Data; Modest Negative Reprice Risk
9:33AM  :  Bonds Hit Snooze Button Ahead of ISM Data
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ted Rood  :  "yes, in my experience, Rob."
robert clark  :  "On an FHA cash out if you pay off credit cards are you required to close them as well?"
adrianto azali  :  "I did one, exactly with what MH said, CPA letter. Got lucky because CPA is also bookkeeper."
Matt Hodges  :  "no CPAs want to write that letter"
Matt Hodges  :  "CPA letter stating no negative effect on business"
Jude Bridwell  :  "For Conv financing, anyone ever use business banks statements for down payment and get any flack from u/w for it"