Rate Sheet Influential Mortgages Extend Rally. Reprices Reported

Posted To: MBS Commentary

4.5 MBS up 13 ticks at 100-03 10yr Tsy up 9 ticks , yields more than 5bps better at 3.85 Stocks better as well, with S&P up 4 pts to 1198 Treasuries and Stocks are "buying the rumor" today, unfortunately, one of them will likely turn out to be wrong. Here is the FN 4.5: The 10yr is at 3.85… Though there are several ways to approach the strength in bonds this afternoon, leading candidates include upcoming Federal Reserve speakers who have been generally supportive of a low interest rate environment and the perception that the stock rally is overdone in lieu of what is anticipated to be a round of earnings that does not justify current stock prices. Combine that with uncharacteristically low expectations for inflation and bonds don't see much of a problem heading down to test…(read more)

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