direct bidders

Overall, this 30 year bond auction was not a dog but a pack of them

13 billion of 30 year bonds just hit the tape. Yield 3.852% with a whopping 3.2 bps tail. Indirect Bidders and Direct Bidders took 41% of the auction, leaving the street to mop up nearly 60%. Bid to cover stunk at 2.47 to 1. Overall, this was not a dog but a pack of them. Give it a D just because we hate to fail anybody. Bonds, notes, and mortgage backs are trading fast market conditions with the 10 year off ½ point and the bond down over 1 point. MBS now off 5 to 7/32’s.

October 14, 2010|Austin Mortgage Market|

We’ll give the 10 year note auction a B, not to hot, not to cold, but just right considering yesterday’s disaster

We’ll give the auction a B, not to hot, not to cold, but just right considering yesterday’s disaster and the tough hedging environment that fixed income investors are in today.

October 13, 2010|Austin Mortgage Market|

Borrowers looking to lock an Austin mortgage rate should stay defensive short term

With more supply coming tomorrow and Thursday, coupled with a stock market that may have found it’s sea legs, borrowers looking to lock an Austin mortgage rate should stay defensive short term. More in a few.

May 11, 2010|Austin Mortgage Market|

42 billion of 5 year notes hit the screen to yield 2.54% with 49% going to the Indirect bidders

42 billion of 5 year notes hit the screen to yield 2.54% with 49% going to the Indirect bid. Direct bidders (Wall Street) took 14% with a bid to cover of 2.75 to 1 (average is 2.69%). Good news is that the yield came in on the screws (no tail), bid to cover was above average, and Indirect buyers were strong. Not so good news is that the “street” stayed away. We’ll give it a B.

April 28, 2010|Austin Mortgage Market|

For the time being, I’d say we are in a “Goldie Locks” market, not to hot, not to cold, but just right

Good news is that the selling of late is moderating. Not so good news is that we do not see a catalyst to rally the market. For the time being, I’d say we are in a “Goldie Locks” market, not to hot, not to cold, but just right. Best to keep both hands on the wheel.

April 8, 2010|Austin Mortgage Market|

Best to take advantage of current mortgage pricing with such low odds of improvement in the cards

Best to take advantage of current mortgage pricing with such low odds of improvement in the cards. Currently, we’re trading 3.73% with the extremes at 4.62% and 2.0%. Lots of room to run (either way) as the economic picture changes.

March 11, 2010|Austin Mortgage Market|

Today’s Austin mortgage rates: the market trades well but your risk reward is starting to dwindle

Today's Austin mortgage rates: the market trades well but your risk reward is starting to dwindle. Given the stiff resistance overhead, best to use the improved mortgage levels. Take advantage.

February 25, 2010|Austin Mortgage Market|

The key here is neutral not bullish, telling us that continued upside (better mortgage pricing) will be a challenge

Technically, the rally we’ve seen the past couple of days has improved the charts, turning the trend to neutral from bearish. The key here is neutral not bullish, telling us that continued upside (better mortgage pricing) will be a challenge.

February 24, 2010|Austin Mortgage Market|