MBS RECAP: Slightly More Active, Same Short Term Range


MBS continue to fare favorably into slightly higher Treasury yields. Although 10’s are off their highs of the day, they’re still over a bp from yesterday’s latest levels (currently 1.54bps higher at 1.8944). MBS, however, are within a tick of breaking even with Fannie 3.0’s down only 1 on the day at 103-16.

There haven’t been any significant market movers effecting the slow clawing-back of morning losses, but the biggest bounce did coincide with the first major sidestep in the equities rally. Sidestep yes, sell-off, no… at least not yet.. SP’s have been looking more wobbly, but are still almost 10 points higher than they’re previous 5yr high close on 2/19.

Any negative reprice risk that had been lurking earlier this morning has long since evaporated with the steady progress coming out of 11am. One lender has already repriced positively, but we’d need to see a sustained break back into positive territory before we’d start to entertain the possibility of additional reprices.

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