MBS MID-DAY: Giving Back Some Gains; Mostly Uneventful; Some Reprice Risk

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Sometimes the 2nd day of a big geopolitical move will spiral into a volatile blaze of glory.  Other times, it's like today.

Bond markets are calmly marching to slightly weaker levels.  The same narrow trend has been intact all morning.  It began PERFECTLY in line with the 8:20am bond market "pit" open.  It was reinvigorated by stock market strength.  Global markets are simply trading in a "risk-on" direction (stock prices and bond yields higher) after yesterday's big "risk-off" move.

As expected, the recent underperformance of MBS is allowing them to stand stronger in the face of broader bond market weakness this morning.  For instance, MBS have given up just UNDER half of yesterday's gains while Treasuries have given up just OVER half of theirs.

Overnight, Treasuries were more volatile.  10yr yields made highs at 2.494.  10's are currently at 2.4836.  We'll be watching to see what happens if they make it back to that overnight high (also yesterday morning's low).  On a break higher, the next technical target would be 2.51.  More importantly, it would likely push MBS into widespread reprice risk territory.

Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.Pricing as of 7/18/14 12:12PMEST Morning Reprice Alerts and Updates 11:21AM  :  ALERT ISSUED: On Shaky Ground; Negative Reprice Risk Looming 9:03AM  :  Bond Markets Weaker Overnight; Bouncing Back Into Domestic Session Josh Olson  :  "DC: Fannie Mae MRI guide states no more than 10%" Brent Borcherding  :  "JO, is there a specified reason the group owns the 30%. We have an investment condo in Chicago that the builder was required to keep 30% for rentals in a redeveloping neighborhood, it was part of the agreement with the city. Fannie approves the condos, on a case by case basis, if documented." Dan Clifton  :  "josh that should be fairly easy. at 80% you need a full review which is appraisal, condo questionnaire, budget, condo docs insurance, the max number of investment units is 49% on conventional for exisiting complexes" Joseph Moran  :  "first rate sheet of the day. basically no change" Josh Olson  :  "UW question: Condo purchase, Conv financing, 80% LTV, 808 credit, 183 units BUT 30% owned by investment group. Who will finance this loan?" John Tassios  :  "I agree with MG's post. today you will have buying today ahead of the weekend for safety. But, next week could be a snap back selloff too." Discuss the MBS and Mortgage Markets on Our Streaming Dashboard

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MBS mid-day: giving back some Gains. For the most part without incident; Some recalculate the risk

Access to more precise indications in time real back months TBA Thomson Reuters and Tradeweb. More MBS mid-day: giving back some Gains. For the most part without incident; Some recalculate the risk

Sometimes the 2nd day of a great geopolitical movement will degenerate into a volatile blaze of glory.  Other times, it's like today.

Bond markets walk quietly at slightly lower levels.  The same close trend was intact throughout the morning.  It started perfectly in line with the 08:20 open market bonds 'divide '.  He has been reinvigorated by the strength of the stock market.  The global markets are trading simply in a direction 'risk on' (price of the shares and higher bond yields) after "risk-off" big yesterday moved.

As expected, the recent underperformance of MBS is allowing them to stand stronger against the broader market bond weakness this morning.  For example, MBS gave up just under half of the gains of yesterday so that the Treasury bills have given up slightly more than half of them.

The day after, Treasury bills was more volatile.  high yields of 10 yr to 2.494.  10 are currently 2.4836.  We will watch to see what happens if they make it back to this high during the night (also the bottom of yesterday morning).  A highest break, the next technical target would be 2.51.  More important still, it would probably push MBS in territory likely to re-price generalized .

Priced below are delayed, note the timestamp at the bottom. Real time pricing is available via MBS Live.Pricing effective from 18/07/14 12:12PMEST morning recalculate alerts and updates 11:21 : alert issued: on shaky; Negative affect risk lurks 09:03 : Bond markets more low during the night; Bouncing Back in-house Session Josh Olson : "DC: Fannie Mae MRI guide indicates no more than 10%" 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." 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 " Joseph Moran :" first sheet of daily rates. "basically unchanged" Josh Olson : "question of UW: purchase of Condo, Conv, financing, 80% LTV, credit 808, 183 units, but 30% owned by the investment group. Who will finance this loan?" John Tassios : "I agree with the post by MG. Today, you'll have to buy today before the end of the safety week. But next week could be a massive sale of back snap too. » Discuss the MBS and mortgage markets on our dashboard streaming

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