MBS MORNING: Wary of Stock Lever and Rates Profit Taking
November 30, 2009 – 8:46 amPosted To: MBS Commentary
The FN 4.0 is -0-01 at 100-09 yielding 3.98% and the FN 4.5 is currently +0-00 at 102-16 yielding 4.198%. The secondary mortgage market current coupon is now 3.96%. The CC yield is +73bps/10yr TSY yield and +63bps/10yr swap rate. "Rate sheet influential" yield spreads (over benchmarks) are marginally improved as Fed buying has easily eaten up modest originator selling, $700mm and even a few 6.0s...meanwhile fast money MBS day traders have focused their strategies "up in coupon". Price action has been sideways all morning with only 6,500 TBA MBS trades so far today. Below is the FN 4.5 two day...notice prices have held to a tight range all morning. Zooming out, you can how the rate of MBS price appreciations has slowed over the past three sessions. Lots of mortgage market...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.