MBS LUNCH: Reprices for the Better Possible If….
January 29, 2010 – 10:06 amPosted To: MBS Commentary
I was feeling terribly unmotivated earlier today...until Pandora played THIS . Now I feel compelled to buy the curve and get long the MBS basis ahead of a normally supportive week for MBS valuations. Well done Pandora, well done. READ MORE: SUPPORTIVE WEEK Hmmm...that statement may have been a bit misleading. Do not read that as: "AQ expects MBS prices to improve next week". Read as: "AQ expects MBS to outperform TSYs next week". The direction mortgage rates head is more a function of Treasury yields at the moment. And no...that does not count as me speaking in third person because I am pretending to be you. For now...after almost two days of consistently failing to break 100-24, "rate sheet influential" MBS coupons have re-entered their recent range. Given early...(read more)Forward this article via email: Send a copy of this story to someone you know that may want to read it.