MBS RECAP: Floating, Locking, and Reasons For Sideways Rates (Including Politics)

There’s a fairly strong case to be made for stock market weakness helping bond yields remain lower than they otherwise might be in September.  As such, we’ll be watching the bond market’s reaction very carefully in the event of a rebound.  Stocks notwithstanding, MBS are coping with higher supply (more locks from originators), which is making it hard for MBS to keep up with gains in Treasuries.

Market Movement Recap

08:28 AM

Bonds were closed during Asian hours, but futures trading was flat.  The European session brought modest weakness that mostly lined up with resilience in equities.  10yr Yields are roughly unchanged to start and 2.0 UMB are up 2 ticks  (0.06).

12:37 PM

Bonds have been up a bit, down a bit, and sideways a lot.  Comments from Fed speakers–while interesting in some cases, haven’t had an impact.  In fact, there’s really no discernible trading theme for the day.  MBS are at their highs, up 0.09 at 103.03 (+3 ticks at 103-01) and 10yr yields are unchanged at .6691.  Stocks are technically up just a bit, but effectively flat since 6am.

04:31 PM

Nothing new to report as the day’s sideways drift persisted through the close.  UMBS 2.0 trading has been very thin, and although prices were briefly as low as 102-30 (102.94), they’re back up at 103 heading into the close.

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

103-00 : +0-02


10 YR

0.6708 : -0.0002

Pricing as of 9/22/20 4:36PMEST

Today’s Reprice Alerts and Updates

12:37PM  :  Interesting Snippets From Fed Speaker, But No Major Change in Bonds

Economic Calendar

Time Event Period Actual Forecast Prior
Tuesday, Sep 22
10:00 Existing home sales (ml)* Aug 6.00 6.00 5.86
10:00 Exist. home sales % chg (%)* Aug +2.4 2.4 24.7

By Matthew Graham , dated 2020-09-22 16:37:54

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Courtesy of Mortgage News Daily

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