MBS UPDATE: Reprices Coming!!!

By: •

Down in Coupon Rally in the TBA MBS market....reprices for the better have been reported. More should be on the way....

Fn 4.0->  +0-10 to 100-10            

Fn 4.5->  +0-06 to 101-16            Gn 4.5->  +0-04  to 101-18

Fn 5.0->  +0-04  to 102-08           Gn 5.0->  +0-05  to 102-17

Fn 5.5->  +0-01  to 102-24           Gn 5.5->  +0-01  to 102-27

Fn 6.0->  +0-02 to 103-12            Gn 6.0->  -0-01  to 103-06

The meeting between President Obama and House Republicans is over...the Republicans had warm feelings towards President Obama's intentions to create a bipartisan feeling on the House Floor. House Republicans pointed out that House Democrats arent sharing the love. Nonetheless the GOP members say they are "anxious" to work with the democrats to pass a stimulus package that will be focused on creating jobs. How much of the hoopla you believe is up to you...you can cut the political rhetoric with a ginsu steak knife (donated by John McCain). President Obama had warm feelings too...ANNNNNNND...he made comment about the need to remove toxic assets from bank balance sheets....ANNNNND....he hinted the world would need to participate in this plan. I am so happy because I pointed this out last night in this BLOG POST :-D

The 2 yr note auction is over...bid to cover was 2.69

Bid to cover represents the demand for the security being auctioned. Anything over a 2:1 ratio is acceptable...in this case with more issuances on the horizon a 2.69 bid to cover is just fine. Indirect bidders took home 35% of the accepted bids...again not too shabby while China celebrates the Lunar New Year.