MBS mid-day: markets lower bond before the 10 yr/FOMC auctions; Registered results below MBS

Access to more precise indications in time real back months TBA Thomson Reuters and Tradeweb. More MBS mid-day: the bond markets lower before the 10 yr/FOMC auctions; Registered results below MBS

While MBS were composed of a portion of ground to the Bills for a few hours, they are generally underperforming this week.  Fannie s 3.5 are down by 5 ticks today from the Treasury bills are 3 ticks down in price.  Guilty is very probably the monthly report of speed of prepayment on Monday.  Traders MBS are generally major adjustments to these data within a few days after the report.  Therefore, we should begin to see underperformance bearing here.

A separate factor that should help the MBS from the Treasury bills is selling at auctions today and 30 years of the auction of 10 yr to come tomorrow.  Market participants trade generally yields higher than they might otherwise move in the auctions.  These "concessions" pre-auction can help facilitate a smoother auction process.  To use an analogy, if you know that you will soon need to do some heavy lifting (primary dealers must make an offer on the Treasury bills auctions), you can take a few deep breaths and avoid any heavy lifting in the period preceding your heavy task of lifting.

In addition to potentially help MBS the gap this morning, the concession of the auction also explains some of the general weakness of the bond markets. The rest of the weakness is a simple factor of yesterday "risk-stop" traffic flattened at midday.  Since midday yesterday, the bond markets have been in a fairly linear trend on the side, a little higher.  For all purposes useful, 10 yr yields simply returned to the technical level 2.57 important and will make their next decision based on the upcoming auction and the release of Minutes of FOMC following an hour later.

Priced below are delayed, note the timestamp at the bottom. Real time pricing is available via MBS Live.Pricing dated 14-07-09 12:08PMEST morning recalculate alerts and updates 09:49 : markets bond slightly more low during the night; Fighting to keep land Victor Burek : "it is not uncommon to be weaker in an auction of 10-year" Jason Anker : "after seeing a huge month and happy sense about me I bump into a friend who has closed 22 M in June. What a biz." Gus Floropoulos : "very interesting how the range was contained" Matthew Graham : "which connotes also taken benefit of Paris more short term that have been implemented on the last race at 2.66" Matthew Graham : "pretty steady bounce back from yesterday afternoon.". If you are looking for a map of 24 hours, there is a distinct trend away channel. Very likely, differential weakness has much to do with auctions 10 yr, positioning of the FOMC and modest rebound in the exchange of "risk-off" which went in the opposite direction yesterday. » Victor Burek : 'profit taking' Scott Valins : "the cause of this weakness of opening? '' Discuss the MBS and mortgage markets on our dashboard streaming

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