MBS OPEN: Stuck in Same Range
At the open the 10 yr is bouncing around between 3.53 and 3.57. Although it has been a slow start to the trading session, we are seeing some signs of a stabilization in flows (buyers and sellers equaling out). However as stock futures tick higher we may see selling pressure pick up.
The 4.5 MBS coupon is 3 ticks lower in price, but stuck in the same range that held for the duration of yesterday's trading day. However if TSY prices move lower, expect prices of rate sheet influential MBS coupons to follow the leader.
NYMEX Crude prices are off yesterday's week over week 62.35 high, current bid is 61.61
The dollar index is stronger. Currently at 79.57.
Stock futures are improving following better than expected Housing Starts data
2s vs. 5s: 148bps
2s vs. 10s: 260bps
5s vs. 10s: 112bps