Price action post auction has not done anything to help Austin mortgage pricing

16 billion of 30 year bonds hit the tape to yield 3.954% with a bid to cover of 2.77 to 1 (average is 2.72 to 1).  The issue had a tail of 1 bp, similar to a schnauzer.  Indirect bidders took 46% (not bad) while direct bidders (Wall Street) took 18% (not too hot).  Overall, it’s a pretty good auction.  We’ll give it a B-.

Price action post auction has not done anything to help Austin mortgage pricing.  Sell side orders are still on the heavy side with MBS still off 15/32’s.  As I mentioned earlier, we don’t see this as a major trend change or a sentiment shift towards the bears.  Just a more realistic, balanced value trade in the coming days that has priced in all the bad news it can.  Careful out there.

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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