The mortgage market continues coping with the combination of last week’s LLPA news and a generally high level of supply.  One hurts bond prices relative to Treasuries.  The other hurts mortgage rates relative to bonds.  

Econ Data / Events

  • 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th)

  • Jobless Claims 1.106m vs 925k f’cast, 963k prev

  • Philly Fed Index 17.2 vs 21.0 f’cast, 24.1 prev

Market Movement Recap

08:11 AM

Bonds improved nicely overnight with Treasury yields pulled lower by an ongoing rally in European yields.  The 10yr is 4bps lower at .644 and 2.0 UMBS are opening up by more than an eighth of a point.

10:38 AM

Treasuries holding gains.  MBS underperforming significantly with 2.0 coupons down roughly an eighth of a point from AM highs.  

04:10 PM

MBS underperforming after Fed buying operation (lots of supply offered from sellers).  This brought MBS back to unchanged levels even as Treasuries remain in moderately stronger territory.  Other potential issues discussed in today’s huddle video.


MBS Pricing Snapshot

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

MBS

UMBS 2.0

103-08 : +0-01

Treasuries

10 YR

0.6525 : -0.0225

Pricing as of 8/20/20 4:47PMEST

Today’s Reprice Alerts and Updates

10:34AM  :  ALERT ISSUED: Negative Reprice Risk Increasing

8:41AM  :  No Major Reaction to Weaker Econ Data


Economic Calendar

Time Event Period Actual Forecast Prior
Thursday, Aug 20
8:30 Philly Fed Business Index * Aug 17.2 21.0 24.1
8:30 Continued jobless claims (ml) w/e 14.844 15.000 15.486
8:30 Jobless Claims (k) w/e 1106 925 963
Friday, Aug 21
9:45 PMI-Composite (source:Markit) * Aug 50.3
10:00 Existing home sales (ml)* Jul 5.38 4.72
10:00 Exist. home sales % chg (%)* Jul 14.7 20.7

By Matthew Graham , dated 2020-08-20 16:49:56

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Courtesy of Mortgage News Daily

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