MBS RECAP: As Initial shock fades, bonds bearing

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The amount of the geopolitical upheavals in the world today is not materially better than yesterday, but no new surprises to the refuge fuel demand for bonds markets found no reason to extend the rally.  That said, if the rally has been somewhat exaggerated or made stronger by something like 'buy snowball', we would know it today.  The fact that there was not a more pronounced discharge reflects the seriousness of the situation and the real presence of the request for refuge yesterday.

MBS has started the day on the lowest of 3/32 and now go out in pretty much the same territory.  The weakness was most severe at the noon hour, but 10 yields had a firm rebound to 2.50%, which marked the end of the sale of momentum in markets bond for today.

Weekends can still bring significant developments when it comes to geopolitical market drivers.  More often than otherwise, if bond U.S. markets rallied on geopolitical risk heading into the weekend, they move in the opposite direction the next week.  As far as how that is played this time, volatility is potentially higher than normal because of a relative lack of events in the calendar in the coming week.  That leave markets more sensitive to headlines that it there are not many other things.

The week after is the opposite, with the first glance at the Q2 GDP, one announcement from the FOMC and NFP Friday.  It could well set the tone for the next major.

Priced below are delayed, note the timestamp at the bottom. Real time pricing is available via MBS's Live. Price starting from 18/07/14 4:01PMEST re-evaluated today alerts and updates 13:10 : Sell-Off is quiet for the moment. Decreasing slightly recalculate the risk 12:28 : alert issued: negative Reprices increasingly more Possible 11:21 : issued alert: tottering; Negative affect risk lurks 09:03 : Bond markets more low during the night; Bouncing Back in-house Session sklodzin : «"Hi all, does anyone of you know a specific rule that dictates the need to separate the coborrowers unmarried 1003?". Josh Olson : "question of UW: purchase of Condo, Conv, financing, 80% LTV, credit 808, 183 units, but 30% owned by investment group." Who will finance this loan?" Joseph Moran : "first sheet of daily rates. basically unchanged" Dan Clifton :"josh which should be pretty easy. 80% you need a comprehensive review, which is the assessment, questionnaire of condo, budget, insurance condo docs, the maximum number of investment shares is 49% on existing complex classics " Brent Borcherding :" OJ, is there a pattern specified for the Group holds 30%. "" We have an investment condo in Chicago that the constructor was required to maintain the 30% for rentals in a redevelopment district, he was part of the agreement with the city. Fannie approves condo projects, on a case by case, if documented." Josh Olson : "DC: Fannie Mae MRI guide indicates no more than 10%" Oliver Orlicki : "mg, we on the 3.5 or 4? '' Alan Craft : "most relevant 3.5 at the moment" Matthew Graham : 'Yes. 4.0 is relevant, but certainly more relevant 3.5 to the attributable risk. "Discuss the MBS and mortgage markets on our dashboard streaming"

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