Posted To: MBS Commentary
The heart-pounding and nail-biting moments of utter catastrophe seem to have subsided at the moment. With about an hour and a half left until 3pm marking, and with what will likely end up being 90% of today's volume behind us, any rate market considerations beyond the intraday-lock-alert variety have sufficient data to draw conclusions. So what might that conclusion be? In short, when rates are marked at 3pm, barring a bona-fide tape bomb, the benchmark 10yr yield will remain under 3.56. Even though this is not a "bullish" conclusion, it at least allows rates to live to fight another day. 4.0 MBS are down 8 ticks at 98-10 4.5 MBS are down 5 ticks at 101-05 10yr Tsy's are up in yield 3.6bps to 3.535 yield curve remains steep at 273.7 bps Breaking News: House rejected the portion…(read more)