MBS MID-DAY: Today’s big winner (relatively): Conforming MBS!

By Matthew Graham

Posted To: MBS Commentary

Once again, bond markets find themselves in weaker territory simply due to the corrective forces that follow strong rallies, and once again, resiliently so. 10yr yields have been losing ground at a very gentle pace during the domestic session, though they were already moderately weaker at the open. While that overnight weakness also translated to lower opening levels for MBS, Fannie and Freddie 30yr coupons have actually been GAINING ground on average since then (as opposed to Treasuries losing ground). Additionally, Fannie 3.0s are only down 6 ticks on the day compared to 14 ticks in the price of 10yr Notes. What’s up with that? Nothing too complicated, really. First of all, it’s normal for MBS to gain less ground on the way down and lose less on the way up. Also, in addition to the…(read more)

Forward this article via email: Send a copy of this story to someone you know that may want to read it.

Via:: MBS MID-DAY: Today’s big winner (relatively): Conforming MBS!

      

Comments

About Mortgage News Daily

Mortgage News Daily

Check Also

Condos and Townhouses – You’re Comparing Apples to Oranges

Because I get the regular opportunity to chat with appraisers, I also have the regular …