Watch stocks, any close up 100 plus will keep the heat on MBS

Fast market conditions exist as traders have gone palms out (selling) on the heels of strong stocks and a weak 7 year note auction.  The auction deserves no better than a C with the yield at 3.141%, 59.3% indirect bidders, and a 2.65 to 1 bid to cover ratio.  Both the indirect bidders and bid to cover were below average.

This one had the tail of a German Shepherd (2.3 bps) versus that of a Rottweiler, adding to the lack of interest.  Both the 10 year and MBS took it on the nose post auction.  At one time, the note was down 1 point and MBS off 10/32’s.

Watch stocks, any close up 100 plus will keep the heat on MBS.

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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