MBS UPDATE: Back in the Range

Back in the range but now our previous support level is behaving like a resistance level....

Fears of an MBS sell off induced "reprice for the worse" are fading as bids return to "status quo" price levels...unfortunately a few lenders still republished rate sheets (-0.75 from one).Remember this morning when we told you that things would get worse if the yield on the 10yr approached the 3.30% level? Well it did and MBS moved to its lows of the day. Following the sell off MBS buyers (THE FED) swooped in and took advantage of  cheaper dollar prices.

At the moment the 10 yr note is trading at 3.302% and the steepness of the  yield curve, as measured by 2s vs. 10s, is at 229.52bps...all while the Dow is testing its lows of the day. When MBS buyers jumped at the cheaper prices, MBS/TSY yield spreads tightened up dramatically...once again illustrating the strength of an artificially supported (the Federal Reserve) market....YAY

Since 5pm "Going Out" Marks....

FN30________________________________

FN 4.0 -------->>>> -0-07  to 100-02  from 100-09

FN 4.5 -------->>>> -0-04  to 101-29  from 102-01

FN 5.0 -------->>>> -0-03  to 102-27  from 102-30

FN 5.5 -------->>>> -0-03  to 103-16  from 103-19

FN 6.0 -------->>>> -0-01  to 104-20  from 104-21

GN30________________________________ 

GN 4.0 -------->>>> -0-10  to 100-02  from 100-12

GN 4.5 -------->>>> -0-07  to 102-00  from 102-07

GN 5.0 -------->>>> -0-06  to 103-12  from 103-18

GN 5.5 -------->>>> -0-03  to 103-26  from 103-29

GN 6.0 -------->>>> -0-02   to 104-14  from 104-16