Friday, September 13, 2013

Neutral, Today's Update

http://globalhomefinance.com




Today's Rate Volatility: NEUTRAL



What happened yesterday?
Mortgage backed securities (MBS) gained +6 basis points from Wednesday's close.

The benchmark FNMA 4.0 October coupon once again traded in a very narrow range that was only 25BPS wide from our intra-day highs to our intra-day lows.

Initial Weekly Jobless Claims came in at 292K vs est 330K - this would have been VERY NEGATIVE for your rates if it was accurate. But there was a statement by the Labor Department that claimed the numbers are understated due to two states not reporting correctly.  According to the Labor Department those two states were upgrading their computers and couldn't report on time.  MBS did move off of their early morning highs on this news but the sell off would be much bigger if these numbers were accurate and below 300K.

We had a 30 year Treasury bond auction.  The results were released at 1:05EDT: $13B, 3.820%/Bid-to-cover 2.40 vs its recent avg of 2.51

This was not as strong as yesterday's 10Year Treasury Note auction and MBS were pressured lower as a result.

We once again tested our 10 day moving average. And once again it held, driving pricing lower (worse pricing for you) after failing to close above it.


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.

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