Besides another round of record TSY issuances last week (which is what many are trading), weakness in stocks, some bond bullish econ data, and the approaching month end/quarter end were supportive of an added bid in bond markets last week. "Rate sheet influential" MBS/TSY (and swap) spreads tightened, the secondary market current coupon was slightly lower at 4.283%, and mortgage rates held near fourth month lows. All in all it was a good week for mortgage professionals looking to lock up any last minute month end closings….(read more)

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US equities were quick out of the gate on Monday morning. In just a few hours stocks have came close to erasing all of last week’s losses. As of 1pm, the NASDAQ is trading 2.16% higher at 2,136, the S&P 500 is up 1.74% to 1,063, and the Dow is up 1.42% to 9,802….(read more)

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Arguments are ongoing for adjusting the current MBS range upward. At the moment, the 4.5 is up 4 ticks to 101-08 and the 10yr tsy is up 4 ticks (in price) as well, bringing the yield down to 3.31. But this latter metric might serve to sober the excitement we might otherwise feel when broaching such topics as "adjusting ranges upward." Last week, we discussed the concept of validation from the treasury market in the sense that we'd like to see tsy's breaking their salient long term ranges in conjunction with similar MBS feats. But at 3.31, we're still a bit too high, not to mention the bounce that already occurred near the lower levels today which you'll be able to see in the chart….(read more)

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Heading into the 5pm "MY SCREENS ARE ALREADY TURNED OFF" marking period, the FN 4.5 is at the highs of the day…+0-07 at 101-11 yielding 4.33%. Spotty reprices for the better were reported, better rate sheet rebates were not widespread….(read more)

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For MBS, Tsys, and Stocks alike, no news was good news today as all three markets rallied amidst a lack of scheduled data, headline drama, or meaningful volume. Perhaps the point about volume should be mentioned separately as it's more of a result of the other factors. So although we're about to unveil a chart with multi month highs for bond markets, it's the caveat of volume that should serve to moderate our frenzied celebration of what ultimately might be "just numbers." Could the gains end up solidifying into something substantial and meaningul tomorrow? Sure, but more than a few times today, I found the world "ethereal" popping into mind. I'm not sure what it means really, but maybe it fits……(read more)

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The month Jennifer Galdes moved into her condo in the Albany Park section of Chicago, the local paper suggested that the area was up and coming. Six years later, she’s still waiting for a Whole Foods.

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Weak orders for durable goods and a soft advance in new home sales have contributed to a lackluster performance in equity markets today. While a boost to consumer sentiment was able to help stocks recovery from a disappointing open, the gains were temporary.

As of 1:00pm, all three indexes appeared to be ending the week on a low note. The NASDAQ is down 0.94% to 2,087, followed by a 0.82% decline in the S&P 500 to 1,042 and a 0.58% slide in the Dow to 9,652….(read more)

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Something had to be done to pique your interest. Sure the S&P is up 5-6 points off the lows of the day, but the effect on bonds has been anything but a "flight." Here's the rundown:

2pm Markets At A Glance

* MBS 4.5's up 4 ticks on the day at 101-02 after being as high as 101-05 around noon
* Steady upward momentum since 10AM data changed to sideways consolidation in PM hours
* 10yr tsy at 3.34 yield, 11 ticks of price improvement, after touching lowest yields of the day at 3.32
* S&P off lows less than an hour ago of 1041 and just got capped out right around the 1048 magic number discussed yesterday (38% retrace of recent cycle)
* 117-24 to 117-25 getting the volume vote in futures so although they pushed as high as the 118-00 psych/tech ceiling, look for nominal retracement and unless volume picks up at the end of day, 117-24-25 indeed looks to be the range
* Friday afternoon, typical data dearth + early exits + yom kippur next week
* MASSIVE flattening over past few days now down to 235bps in 2's 10's. Does that even sound right after 245-255 seemed like new world order for so long.
…(read more)

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A Southhampton New York family is turning a devastating fire that destroyed their home into a model of energy efficiency. The new home they are building with the assistance of local environmentalists will be carbon neutral allow net zero energy consumption. …(read more)

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I got an email on Wednesday inquiring about a pipeline strategy for a medium sized branch lender. They do some mandatories, but are generally best effort lockers (ewww…expensive hedge). A couple of commitments had been submitted overnight, at a time when pricing was aggressive. The next morning, rebate got trimmed and the desk was now underwater on several loans….(read more)

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