MBS RECAP: Week Ends With Light Volume At Highs


Past 12 Noon on a Friday, so it must be time to head home! Despite an ongoing news flow out of Europe, all has been met with indifference by domestic bond markets (despite German Bunds hitting another record low). Combine that with equities stepping down off their highs (ostensibly meeting some resistance at y’day’s highs), and MBS/TSYs are looking eager to settle in to their characteristic Friday afternoon drift.

Fannie 3.5’s briefly hit 103-29 support and have since bounced higher in very light trading. 10yr yields are currently hovering around 1.85 after making it only as high as 1.86’s earlier.

Really, there’s nothing else to look forward to or fear, with the exception of something unexpected and unscheduled. Obama speaks this afternoon in support of recently proposed legislation that would effectively constitute ‘HARP 3.0,” but apart from the legislation being a long-shot, it’s not an MBS market mover (at least not the parts of the MBS coupon stack that affect current rate sheets).

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