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Markets Taking Comey Testimony in Stride; Reprice Risk Fades

Negative reprice risk is fading as bonds have managed to hold inside their weakest levels of the day throughout (and after) the Comey senate testimony.  The open portion of the testimony wasn't expected to contain any bombshells, but the closed portion of the testimony could produce more meaningful results based on several questions that Comey implied he could answer after the cameras were off.  The "closed" hearing is proceeding presently, but it's unclear whether we'll receive any updates today.  The WSJ has a good recap of the open portion here.

While much of the testimony was "interesting," bond markets had already done a good job of getting in position (for an absence of scandalous revelations) ahead of time.  Just before the 10am start time, 10yr yields had risen from 2.14 yesterday all the way up to 2.21%.  Incidentally, the latter is one of the key technical levels we've been watching, so it's nice to see yields top out there.

As always, you can stay up to speed on key technical levels, lock/float thoughts, bullet-point lists of everything that matters to bond markets and nothing that doesn't with the MBS Live Huddle.  If you haven't seen it yet, just be sure you've opted in to receive email notifications here: http://app.mbslive.net/Alerts/MbsHuddle.  Today's huddle will be out shortly.

 

MBS / Treasury Market Data

UMBS 5.5
99.48
-0.17
UMBS 6.0
100.94
-0.08
2 YR
4.6221
+0.0541
10 YR
4.2008
+0.0128
Pricing as of: 3/28 2:15PM EST
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