Illiquid market trading is pushing the market around this morning

Illiquid market trading is pushing the market around this morning.  We started the day with the 10 year note up 8/32’s, trading at a yield of 3.17%.  However, within the last few minutes, traders have turned sellers in treasuries and mortgage backed securities.  Currently, we are off 17/32’s on the note (yield 3.26%) while MBS has slipped 7/32’s from the level we priced at. 

 

Fast market action with thin volume can and is whip sawing the price action.  Stocks have been down all morning, currently off 140 points on the big board.  If you open up the daily chart on the note, you can see the bearish trend line that has developed.  Every time we try to take it out on a rally, market forces sell it off.  This is not friendly to MBS pricing. 

 

Earlier today, Weekly Unemployment Claims fell 12K but Continuing Claims rose to a record high for the 16th week in a row.  Normally, this would be a net positive for our pricing but in our opinion, the upcoming holiday weekend is responsible for illiquid, volatile price action.

About Max Leaman Austin Mortgage

GREAT RATES, LOW FEES, CLOSE ON TIME™ ---- 2012 Ranked #1 Austin Residential Mortgage Lender (Austin Business Journal) 2010, 2011 & 2012 Five Star Professional (Texas Monthly) 2009, 2010, 2011, 2012, 2013 PrimeLending Chairman's Circle Award 2009, 2010, 2011, 2012 Scotsman Guide Top Originator (Top 200 Mortgage Professionals in U.S.A.) Better Business Bureau "A+ Rating" National Lender Rankings (Scotsman Guide): Top Purchase Volume (No. 10) Most Loans Closed (No. 32) Top Dollar Volume (No. 88)

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