Treasury to Sell MBS Holdings. Minimal Shock Expected
By · CommentsPosted To: MBS Commentary
Today, the U.S. Department of the Treasury announced that it will begin the orderly wind down of its remaining portfolio of $142 billion in agency-guaranteed mortgage-backed securities (MBS). Excerpts from the Presser… Starting this month,Treasury plans to sell up to $10 billion in agency-guaranteed MBS per month, subject to market conditions. At the end of each month, Treasury will post on its website the total agency-guaranteed MBS sales it has made, broken down by coupon and agency. “We’re continuing to wind down the emergency programs that were put in place in 2008 and 2009 to help restore market stability, and the sale of these securities is consistent with that effort,” said Mary J. Miller, Assistant Secretary for Financial Markets. “We will exit this investment…(read more)
MBS MID-DAY: Holding Near Intraday Lows
By · CommentsPosted To: MBS Commentary
MBSonMND : MBS MID-DAY Open MBSonMND Dashboard FNMA 3.5 94-27 : -0-15 FNMA 4.0 98-29 : -0-14 FNMA 4.5 101-31 : -0-15 FNMA 5.0 104-21 : -0-14 GNMA 3.5 95-27 : -0-15 GNMA 4.0 100-14 : -0-13 GNMA 4.5 103-12 : -0-13 GNMA 5.0 106-01 : -0-12 FHLMC 3.5 94-22 : -0-16 FHLMC 4.0 98-22 : -0-16 FHLMC 4.5 101-26 : -0-17 FHLMC 5.0 104-15 : -0-15 Pricing as of 11:00 AM EST Morning Market Updates A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBSonMND Dashboard . 10:51AM : Support Continues to Hold for MBS and Treasuries After putting in their weakest levels of the morning following news that Treasury will begin to sell their MBS holdings, 10yr benchmarks and FNCL 4.5’s are progressing sideways in a tight range just off those lows. 10yr yields are currently at 3.347 and haven…(read more)
Posted To: Pipeline Press
Last Thursday, while on a tour of the Chicago Mercantile Exchange, my son and I met and chatted with Rick Santelli, who many know as CNBC’s financial futures reporter at the CME (CBOT). I mention this because when I told him that I was there to speak at a Fannie Mae regional meeting, he launched into a dissertation about how better off the mortgage industry would be if the government ended all of its involvement, specifically supporting the agencies. He feels very strongly about this, and certainly has a media audience. Businessman Steve Forbes, who also has great access to the media, agrees – he is pushing for a complete and immediate severance of all the government’s ties to the GSE’s . (I guess that would turn them from “GSE’s” to plain “Mortgage Enterprise’s”?) Forbes believes that a sharp…(read more)