MBS RECAP: Back To Recent Lows Ahead Of GDP


A certain measure of vindication now for those of us who fired up the screens this morning only to find a vast sea of RED for bond markets. Well… it’s still all red, but now a mere lake.

Whether or not we progress towards “puddle” status or perhaps even turn green, remains to be seen, but for now, bond markets have bounced back fairly well, incessantly chasing a much more determined sell-off in stocks.

Fannie 3.0s are down only 3 ticks on the day now at 104-12 but if you’re reading this update, you might want to check the live pricing window as things have been moving quickly. Based on the timing of most lenders initial rate sheets, 104-12 would be good enough for positive reprices in a few cases, but given the volatility, most lenders would probably want to see the rally hold its ground for a bit before considering a reprice.

SPs are down over 10 points in the past 2 hours and 10yr yields bounced at 1.85 in high volume down to 1.7995 currently. If that bounce continues to hold through the close, it will be a promising technical development on several levels, even if not a surefire guarantee of strength ahead.

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