MBS RECAP: All-Time Levels All Around. Here’s How To Play It

Another day, another opportunity for MBS prices to hit record highs and rates to–well…  rates are just sort of kicking around a piece of ground in their home town (at all time lows), but notably, they’re not looking too eager to improve.  Why is that and what should you do about it?

Market Movement Recap

08:18 AM

Bonds began the overnight session slightly stronger and chopped around in a narrow range since then.  10yr yields are starting the domestic session down about 1bp.  2.0 UMBS are starting out up 2 ticks (+0.06).

09:15 AM

Quick, serendipitous weakness just now taking 10yr yields 2 bps higher and MBS an eighth lower.  Looks like the bounce may be in already though. Month-end trading.

11:05 AM

Stocks are sliding and bonds have bounced back a bit.  10yr now unchanged and 2.0 UMBS up 2 tick (0.06).  

05:00 PM

MBS surged into the close, ending the day more than a quarter point higher at new all-time highs.  10yr yields are effectively at all-time lows (for those who throw out March 9th craziness).  And all this despite a nice recovery to stronger levels in stocks. Farewell July!

MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.


UMBS 2.0

103-22 : +0-09


10 YR

0.5282 : -0.0128

Pricing as of 7/31/20 5:02PMEST

Today’s Reprice Alerts and Updates

2:13PM  :  MBS At Highs, Outperforming Treasuries

9:15AM  :  ALERT ISSUED: Bonds Losing Ground; Limited (if any) Reprice Risk For Early Lenders

By Matthew Graham , dated 2020-07-31 17:04:48

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Courtesy of Mortgage News Daily

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