MBS RECAP: Extra Calm, Slightly Positive Day for Bonds

By: Matthew Graham •

Bond markets got nostalgic for summertime Mondays today.  Despite it being the beginning of a Fed week and falling hard on the heels of a sharper move on Friday, MBS and Treasuries barely budged by the time the domestic session rolled around.  Even in the overnight session, there was only a token movement into slightly better territory. 

Trading seemed more like it was bouncing back from Friday's weakness than responding to any organic motivation to rally.  And there was actually at least one organic motivation to rally.  New Home Sales came in at an annual pace of 468k versus a median forecast of 555k.  The previous reading was also revised significantly lower (529k vs 552k).  But the market's response was a mere token extension of a rally that was already in progress.  10 minutes after the data, bonds simply locked into a sideways slide for the rest of the session.

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
101-19 : +0-05
FNMA 3.5
104-16 : +0-04
FNMA 4.0
106-24 : +0-03
Treasuries
2 YR
0.6370 : -0.0080
10 YR
2.0580 : -0.0286
30 YR
2.8680 : -0.0313
Pricing as of 10/26/15 5:34PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:59AM  :  Bonds Undoing Some of Friday's Weakness Despite Corporate Issuance
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jason Anker  :  "prove it should have never been there in the 1st place is your only option for that"
jeff weaver  :  "removed as in doesn't show up on his credit in the future"
jeff weaver  :  "because it's already been filed at the courthouse which is where they pull it from"
Jason Anker  :  "removed as is "paid" right?"
Jason Anker  :  "sure why not?"
jeff weaver  :  "Is it possible to get a public record removed from a credit report as part of a settlement?"
Jeff Anderson  :  "Isn't that what the August "correction" was?"
Steve Chizmadia  :  " Equity markets will throw a hissy fit if they think the days of free money are over. Just an opinion "
Kevin Danforth  :  "If borrowers have given consent to receive electronic docs and you can verify they have received the CD we are treating it as same is delivered in person "
Kevin Danforth  :  "it depends if you can verify receipt CS"
Curt Sandfort  :  "If a CD is sent via docusign, is it considered "personally delivered" or "delivered electronically"?"
Compliance is Watching Me  :  "nothing like lots of green on a Monday"