MBS RECAP: 3/7/2012

We’re seeing a thicker than normal volume of trading following the Fed’s scheduled buyback in the long end. The Fed clearly favored the shorter duration offerings (2036-2039), and left most of the 2040+ offers out to dry.

It’s not uncommon to see a bit of a whipsaw after scheduled Fed buying, but it normally hasn’t left us at the worst levels of the day as it is currently.

Fannie 3.5’s are down 6 ticks at 103-15 and bounced as low as 103-13. 10yr yields touched 1.98 and currently sit at 1.977. For lenders that priced early enough in the day, negative reprices are a risk.

Article source: http://www.mortgagenewsdaily.com/mortgage_rates/blog/250158.aspx

Leave a Reply

WP Facebook Auto Publish Powered By : XYZScripts.com
Bunk Beds