MBS RECAP: Quintessential Holiday Week Session for Bond Markets


It’s rare that the day’s MBS RECAP will be published this early in the day (and of course, I’ll put out an update if things change significantly), but it’s even more rare for volume and participation to be as low as it is–not to mention the general lack of lender response.  In fact, apart from a few lenders that have repriced into the afternoon strength, most simply opted to keep rate sheets wholly unchanged from Friday’s latest.

There was some movement in the overnight session–mostly negative–followed by some movement in the domestic session–mostly positive.  The net effect is a Fannie 3.0 coupon that is +0-01 tick on the day and a 10yr Treasury yield that was unchanged at the 3pm Treasury pit close.  Volumes are about half what they were Friday–itself about half the recent average. 

Indeed there is not much to write home about.  Tomorrow morning’s boatload of 8:30am data is about the only chance we have this week to see if any market participants are tuned in, or if they simply left those “drinking bird” toys at the desk to press the trade buttons.

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