MBS Alert: Modest Additional Weakness After 3yr Auction

Julian Hebron

Founder

The Basis Point

https://thebasispoint.com/

thebasispoint.com

San Francisco CA

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MBS Morning:

MBS Recap:

MBS Alert:

MBS Update:

MBS Huddle:

Modest Additional Weakness After 3yr Auction

Mon, Jun 10 2024, 1:36 PM

3yr Treasury Auction
- 4.659 vs 4.648 expectations
- bid to cover 2.43x vs 2.57x avg

These are fairly weak stats for a 3yr auction--weak enough to leave a bit of a mark on the rest of the Treasury yield curve (not common for this short of a duration).

10yr yields are another 1bp highs, 2.8bps in total on the day at 4.489. MBS are down an eighth of a point in 6.0 coupons and nearly an eighth from lender rate sheet print times. Only the jumpiest lenders would be even remotely close to considering a negative reprice. Most would want to see several more ticks of weakness.

More MBS and Treasury Markets

MBS Alert:

Even More Reprice Risk Now - Fri, June 28, 8:03 PM

MBS Recap:

What to Make of Week's Weakest Levels After Solid PCE Data - Fri, June 28, 7:34 PM

MBS Morning:

Month/Quarter-End Trading Causing Lots of Volatility - Fri, June 28, 4:10 PM

MBS Alert:

Negative Reprices Becoming More Likely - Fri, June 28, 3:09 PM

MBS Alert:

Negative Reprice Risk Increasing as Bonds Give Up PCE Gains - Fri, June 28, 2:48 PM

Julian Hebron

Founder

The Basis Point

https://thebasispoint.com/

thebasispoint.com

San Francisco CA

Ask Me a Question

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