MBS RECAP: Stock Lever Helps Bond Markets Hold Ground

Posted To: MBS CommentaryMBS Live : MBS Afternoon Market Summary Perhaps less than coincidentally, the S&P just closed at its lowest levels in more than a week on the same day that many lenders rate sheets were at their best levels in more than a week. In both cases, its a close call, but less disputable is the recently strong connection between equities and bond markets. MBS got a bit wishy-washy this afternoon as the lions share of the days liquidity was absorbed in the morning hours. MBS fell moderately from 2-3pm, but stock market weakness from 3-4pm helped to reinforce the 3pm weakness in bond market with both MBS and Treasuries making improvements from there. 10yr yields crossed into the 1.95s just after 4pm and Fannie 3.0s regained their 103-16 pivot point. With the exception of Friday mornings initial...(read more)Forward this article via email:  Send a copy of this story to someone you know that may want to read it.http://www.mortgagenewsdaily.com/mortgage_rates/blog/294321.aspx @ uwad.com