December 9th, 2014 9:15 PM by Dale DiGennaro
Mortgage Backed Securities(MBS) are up +1/32 (FNMA 30-yr 3.5 at 104.04), around 4/32 below morning levels, and near the low for the day. Some unfavorable repricing was seen. That being said....the 30 year rate continues to hover right around the same place its been for weeks. It appears the roller coast ride will continue for awhile longer!
Concerns about slower growth in China hurt global stocks and helped bonds early in the session, but markets reversed direction this afternoon. China tightened margin requirements, which may reduce the amount of available credit.
In the US, the October JOLTS report revealed that job opening increased to 4.83M from September, above the consensus of 4.79M. Demand was close to average for the 3-yr Treasury auction. The Dow is down 50 points, after being down over 200 points at the lows. Tomorrow, no economic data will be released. The results from the 10-yr Treasury auction will come out around 1:00 et.
The monthly rollover will take place overnight for FNMA and FHLMC 30-yr securities.