MBS RECAP: Fairly Slow: Risks and Opportunities Remain

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Mortgage Application Activity Hits Summer Doldrums

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For a week with so much on the calendar and so much at stake, today got things off to a fairly slow start.  That’s not entirely surprising, given that it had the least going for it in terms of scheduled events.  It also happened to be a Monday in the summertime.  

The overnight trading session made things look even more uneventful, with no meaningful movement during Asian market hours.  Things changed in Europe, however, with a series of state-level inflation reports (especially in Germany) serving to push European yields higher.  Anticipation for a hike hike from the Bank of England also played a part.

Bonds settled down during domestic hours, but not before edging to the highest yields in more than a month (by a few thousands of a percentage point, to be fair).  The 9:30am NYSE open brought some buying demand for bonds and selling for stocks.  Fannie 4.0 MBS ended the day down 2/32nds (.06) at 101-16 (101.50).


MBS Pricing Snapshot

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.

MBS

FNMA 4.0

101-16 : -0-02

Treasuries

10 YR

2.9747 : +0.0127

Pricing as of 7/30/18 6:02PMEST

Today’s Reprice Alerts and Updates

10:37AM  :  Bonds Get Some Help After Europe-Inspired Weakness


MBS Live Chat Highlights

Matthew Graham  :  “yeah, no difference. She’s not going to sway the committee”

Chris Stevens  :  “MG- With hawkish Esther George now having a vote do you think it makes a difference or are most voting members in the camp of 2 more hikes this year so basically she is just one of the crowd now?”




Original Source