High, Yesterday's News

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Today's Rate Volatility: HIGH What happened yesterday? Mortgage backed securities (MBS) lost -14 basis points from Tuesday's close. The benchmark coupon once again traded in a very narrow range. We only had a spread of 26BPS from our intra-day highs to our intra-day lows. Wholesale Inventories came in a little weaker than expected (0.1% vs est of 0.3%) and that is generally positive for pricing, but MBS had little reaction to it. We got the results of our 10YR Treasury Note Auction at 1:05EDT: $21Billion at 2.946% with a bid to cover ratio of 2.86 vs the recent avg of 2.73. This strong showing helped MBS to improve +22BPS from our levels at 1:00EDT and then traded sideways for the rest of the trading session. What is on the agenda for today? Don't miss out on the mortgage industry's premiere insight and commentary. Subscribe to RateAlert Executive today and get today's lock advice, complete market commentary and forecast for today, and watch the full Morning Coffee Update video with Bryan McNee - all available only to our Executive subscribers.