Posted by: cfigueira | March 11, 2010

MBS AFTERNOON: Mortgages Playing Follow the Leader with Benchmarks

Posted To: MBS Commentary

Heading into the 5pm “what a slow day in the mortgage market” marking period… The FN 4.0 is -0-03 at 98-01 yielding 4.189% and the FN 4.5 is flat on the day at 101 the rock yielding 4.39%. The secondary market current coupon is 4.33%. The CC yield is 61bps over the 10yr TSY note yield and 58.6 basis points over the 10 yr swap rate. Static current coupon yield spread valuations are TIGHTER AGAIN! Holy relentless yield spread tightening! LOOK HOW SIDEWAYS FN 4.5 PRICES WERE TODAY! The MBS NINJA shares his thoughts on the recent stability of “rate sheet influential” MBS coupons in the face of rising benchmark yields: Mortgages, trading in the secondary market (soon to filter back to the primary and rate sensitive one), are tightening daily as more money is put to work along…(read more)

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