MBS AFTERNOON: Breaking News, Volatility Spikes, Massive Price Changes, Volume Gets Extremely High!
These are all things you will not have to worry about on an afternoon such as this, plagued by not one, but three of the accelerants stoking soporific summer sessions: "Afternoon," "Friday," and "lack of data." Sure we had consumer sentiment this AM, but did anyone really care? And whatever earnings news came out wasn't enough to make any sirens go off on top of my computer or make the warm glow from the TV's and Monitors in my office turn red with "breaking news" alerts... Posting content to the MBS blog today is merely a matter of protocol. We'd rather you go rest up for next week's auctions and other miscellany. If you're gonna twist my arm to give you an update, I'll acquiesce, but you'll only get two sentences and two charts out of me before the weekly wrap!
Trading continues in an extremely range-bound, but slightly positive direction as almost nonexistant volatility has not taken us below 99-14 or above 99-18 since a few minutes after the noon hour. Though lenders can change prices for reasons beyond MBS, to say there is no risk of a reprice for the worse right now is extremely safe considering there's no risk of anything at all...
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