MBS UPDATE: Range Moderating Behavior

Weaker stocks, weaker US dollar, weaker energy prices...still not enough to help the yield curve move flatter. Eh...its Friday and flows are SLOOOOWWW

The 10 yr is now trading 16/32 lower yielding 3.156% based on the bid side...the range is containing losses. At Jason Wilborn's request...pink chart. Youre welcome Jason!

MBS/TSY yield spreads have leaked out a bit as market participants are beginning to succumb to the distraction of a sunny Friday afternoon. Just another Friday...no reason to panic.

"Reprices for the worse" are not a threat based on MBS bids....we are still comfortably range bound. See MBS MORNING for more on the inertia put on bids when prices stray too far from par...

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

FN30________________________________

FN 4.0 -------->>>> -0-06   to 100-02  from 100-08

FN 4.5 -------->>>> -0-04   to 101-28  from 102-00

FN 5.0 -------->>>> -0-03   to 102-29  from 103-00

FN 5.5 -------->>>> -0-02   to 103-21  from 103-23

FN 6.0 -------->>>> -0-02   to 104-24  from 104-26

GN30________________________________ 

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

GN 4.5 -------->>>> -0-04   to 102-00  from 102-04

GN 5.0 -------->>>> -0-02   to 103-22  from 103-24

GN 5.5 -------->>>> -0-01   to 104-04  from 104-05

GN 6.0 -------->>>> -0-03   to 104-20  from 104-23

PS Ginnie MBS notification day is upon us...when/if GN pricing falls off remember that this is normal behavior during settement...