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MBS RECAP: Bonds Break The Range, But Mortgage Rates Are Dragging Their Feet

Posted To: MBS Commentary

Bonds Break The Range, But Mortgage Rates Are Dragging Their Feet The simple version of the story: mortgage rates aren't moving lower nearly as quickly as the bond market suggests they should be. There are some very good reasons for that. Today's video discusses those as well as the lock/float implications. Econ Data / Events 20min of Fed 30yr UMBS Buying 10am, 1130am (M-F) and 1pm (T-Th) US Q2 GDP -32.9 vs -34.1 f'cast , -5.0 prev Jobless Claims 1.434m vs 1.450m f'cast , 1.422m prev Continued Claims 17.018m vs 16.2m f'cast , 16.151m prev Market Movement Recap 08:37 AM No major reaction to GDP/Claims. This follows general strength in the overnight session leaving 10yr yields a total of 2.6bps lower on the day at .551. UMBS 2.0s are an eighth of a point higher on the day…(read more)

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