MBS AFTERNOON: Current Coupon Sees Modest Recovery
Posted To:MBS Commentary
While last Friday's MBS valuation weakness extended all the way into the first half of today's trading session…buyers finally emerged this afternoon to cover shorts, helping yield spreads tighten up a few bps and providing a small correction heading into the release of Non-Farm Payroll data on Friday. The FN 4.0 is -0-04 at 99-22 yielding 4.038% and the FN 4.5 is -0-04 at 102-02 yielding 4.248%. The secondary market current coupon yield is 4.046%. The CC yield is 73bps above the 10yr TSY yield and 62bps above the 10yr swap rate. Unfortunately, the slight correction we witnessed this afternoon is not as noticeable to the naked eye, especially with our benchmark directional guidance givers heading in the wrong direction (up) and “rate sheet influential” MBS prices testing…(read more)
This mortgage update is brought to you by: Adam Quinones – You can read the full article at MBS AFTERNOON: Current Coupon Sees Modest Recovery
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