Posted To: MBS Commentary
Rates trader's are celebrating the last Friday trading session of 2009 by…….NOT TRADING! Today has indeed been a reeeeeal snoozer in the rates market. Both 10s and "rate sheet influential" MBS coupons haven't made much progress in either direction. In the TSY futures market, 300,000 contracts have traded, mostly back and forth around 118-00 with several failed attempts at 118-04. Notice a lack of progress in either direction. In the cash market, the 10yr note is hovering around the all-important 3.50% pivot point. The 3.375 coupon bearing 10yr TSY note is currently -0-05 at 98-30 yielding 3.503%. In the range then out, in the range then out. SEEE…. Slow flows and sideways price action are obvious the TBA MBS market too…only 3,000 trades have printed to data feeds….(read more)