MBS MORNING: Testing the Staying Power of Friday’s FTQ Rally
Posted To: MBS Commentary
DID I MENTION THUNDER SNOW ! By the look of the charts, it doesnt look like we should be expecting any noticeable improvements today in rates momentum. This price downtrend started last Friday by the way….we are just extending it. The FN 4.0 is -0-08 at 98-08 yielding 4.169% and the FN 4.5 is -0-05 at 101-08 yielding 4.375%. The secondary market current coupon is 2bps higher on the day at 4.313%. The current coupon yield is 72.4 bps over the 10yr TSY note yield and 62.6 bps over the 10yr swap rate. MBS yields are moderately tighter vs. benchmark yields this morning. The 3.375 coupon bearing 10 year TSY note is -0-06 at 98-06 yielding 3.594% (+2.3 bps from 5pm marks on Friday). The 2s/10s curve is unchanged at the 280bp pivot. The dollar index is weaker vs. a basket of currencies….-0.37…(read more)