Friday’s Lowest Prices in Line With Today’s Highest

MBS Live: MBS Morning Market Summary

For Fannie 3.5s and 10yr Treasuries, the trading levels that finally offered support at the end of Friday’s sell-off, have turned into resistance so far this morning. More simply put, Friday’s floor is today’s ceiling for MBS (or vice versa for Treasuries). Not that it’s much of a consolation, but Fannie 4.0s (and yes, they’re a part of the production section of the MBS stack now) are currently trading fairly well with respect to Friday’s range, but only after joining 3.5s for brief, scary ride lower into 9:30am. Before then, Treasuries had opened just slightly weaker after a slightly stronger overnight session. Domestic trading brought increased volatility and 10yr yields have been on the ropes over 2.20 since just before the cash open for Stocks. There’s been no relevant scheduled data though S&P (the ratings agency) did upgrade the US sovereign outlook to AA+. This looked to have had a positive effect on equities more than anything, but the stock lever swings may account for some of the more pronounced weakness around 9:30am.

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I am a mortgage banking veteran with over 15 years of experience at every level of the mortgage arena. I am known as the "closer" because of my troubleshooting skils and ability to explain in detail to my clients and business partners "What Makes A Mortgage Approvable".

Posted on June 10, 2013, in Uncategorized and tagged , , , , , , , . Bookmark the permalink. Leave a comment.

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