MBS RECAP: Bond Markets Escape Unscathed by Excitement


All movement is purely incidental on this, the lightest volume day of any full business day in 2013. But bond markets are now incidentally in positive territory across the board.

10yr yields are testing their 2.58 floor for the 6th time since 6:43am ET and both MBS production coupons (3.5s and 4.0s) are 4 ticks higher on the day (at 100-31 and 104-02 respectively). Given that we’re in the midst of Class A settlement and the general level of absenteeism in capital markets this afternoon, lender reprices are less likely than they otherwise might be, but are probably now moving from unlikely to “possible” for a few lenders.

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