MBS RECAP: Timing of Today's Volatility Could Create Some Opportunity

Posted To: MBS Commentary

There’s no way to predict the future for rates and markets, but there are occasionally tactical opportunities. Today’s version involves lenders being forced to price rate sheets when MBS had just swung down to the lowest levels of the day. Prices have since bounced. If they were to hold here, lenders have 2 choices: offer improved pricing this afternoon or tomorrow morning. Econ Data / Events 11:30-11:50 AM (ET) – Fed 30yr UMBS Buying ISM Manufacturing: 43.1 vs 43.6 f’cast, 41.5 prev Market Movement Recap 10:06 AM: Flat at roughly unchanged levels out of the gate, then MBS tanked (moderately) and Treasuries tanked modestly. A portion of that weakness has been recovered in MBS, but Treasuries remain near higher yields. 12:31 PM: Treasuries jumping in with some gains of their own now at the end…(read more)

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