Posted To: MBS Commentary
I am in a really goofy mood this morning. Unfortunately this state of mind is making its way onto paper via sarcasm. Please see the Mortgage Apps story for more on that… At 1am the Treasury announced the terms of month-end debt supply. $44,000,000,000 in 2s go off on MONDAY December 28 $42,000,000,000 in 5s to be auctioned on TUESDAY December 29 $32,000,000,000 in 7s will be auctioned on WEDNESDAY December 30 That totals $118bn ($95bn in new cash). Pretty much “as expected” in terms of auction amounts. Oh…and by the way. “Rate sheet influential” MBS prices are FALLING FAST! The FN 4.0 is now +0-06 at 97-04 yielding 4.273% and the FN 4.5 is +0-06 at 100-06 yielding 4.489%. (My speeds are slower than the street's assumptions). The secondary market current coupon is…(read more)
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