MBS RECAP: Day without incident of bonds markets relatively stable sheets; Registered results below MBS

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As the trades last few day trickle in, MBS are fixed to close almost perfectly in line with levels of closing yesterday.  Even before that, it was not eventful to talk about.

The main force of European trade has been slightly negative this morning, but the MBS and treasuries remained inside the lowest levels of yesterday.  Producer prices came in 'good health', and while some credited these data further weakness in the morning, I do not see it.  Obligations were already on a recovery and we are talking about the yields of about 2,560 to 2.567 in 10 years.

It is a bit easier to make a case for the weaker Industrial Production at 9:15 as a modest benefot to bond markets.  More than anything , collapse of stocks and flows of "asset allocation" (fund managers sell stocks to buy bonds) helped keep the range contained for MBS.

Despite the diversity of content, however, MBS has struggled somewhat compared to the Treasury bills.  10 yr yields are close to their 2 best days levels while MBS are roughly in the middle of their.  This incompetence has been a fairly constant theme for almost 2 weeks now.

Second day of Yellen's testimony provided Congressional nothing more that a few good laugh.  There is no significant market reaction.  The calendar is a bit more go tomorrow with unemployment insurance, starts and Philly Fed.

Priced below are delayed, note the timestamp at the bottom. Real time pricing is available via MBS's Live. Price starting from 16/07/14 4:42PMEST recalculate alerts and updates of today 11:10 : return to unchanged as Stocks Slide levels 09:05 : slightly lower than after neutral bond markets night Session Nathan Miller : "thx rob, it's, you know their requirement of pmt down on a purchase off-hand?" Robert clark : "#NMSI if the loan amount exceeds $ 417,000" Nathan Miller : "Apart from hard money lenders, someone knows a lender from income reported for a deal in CA? self emp brwr. » William Hansen : "10 yr green red FNMA 3.5." I hope that the FNMA is transformed. "Discuss the MBS and mortgage markets on our dashboard streaming"

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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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