After last week’s LLPA news, lenders pulled back pricing for obvious reasons and only gradually lowered their defenses.  As of today, we are finally seeing that process level-off, which means any major movement in bonds should more readily translate to rates in the days ahead.  Markets will likely hear things they already know from the Fed tomorrow as bonds keep trying to confirm a near-term ceiling at 0.73% in 10yr yields.

Econ Data / Events

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

  • Housing Starts 1.496m vs 1.24m f’cast, 1.22m prev

  • Building Permits 1.495m vs 1.320m f’cast, 1.258m prev

Market Movement Recap

07:56 AM

Bonds began the overnight session modestly stronger despite stock futures doing the same.  Yields and stocks fell into the 3am hour before bouncing higher.  Treasury yields are still lower versus yesterday, but stocks are inching closer to all-time highs (S&P).  MBS are starting the day up 3 ticks (0.09).

03:07 PM

Bonds rallied into the afternoon with both MBS and Treasuries hitting their best levels between 1230-130pm ET.  Both remain in positive territory, but have pulled back a bit since then.  Not much is being cited as motivational for bond traders today apart from positioning ahead of tomorrow’s Fed Minutes.


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

103-05 : +0-05

Treasuries

10 YR

0.6704 : -0.0126

Pricing as of 8/18/20 4:52PMEST

Today’s Reprice Alerts and Updates

2:08PM  :  MBS Off Best Levels Fairly Quickly

11:03AM  :  Bonds at Best Levels


Economic Calendar

Time Event Period Actual Forecast Prior
Tuesday, Aug 18
8:30 House starts mm: change (%) Jul 22.6 17.3
8:30 Build permits: change mm (%) Jul 18.8 3.5
8:30 Housing starts number mm (ml) Jul 1.496 1.240 1.186
8:30 Building permits: number (ml) Jul 1.495 1.320 1.258

By Matthew Graham , dated 2020-08-18 16:55:01

Source link

Courtesy of Mortgage News Daily

Leave a Reply