MBS MARKET COMMENTARY

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Examples of Mortgage Capital Trading Daily Market Commentary

Previous Weekly MBS Market Commentaries

MBS Weekly Market Commentary Week Ending 2/19/2021

Long-term 30-year yields have risen to 2.169%, the 10-year is currently yielding 1.375%, and the Fannie Mae 30-year current-coupon spread to the 5/10-year blend widened to +77. Yields on Treasuries closed at their highest in almost a year.

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MBS Weekly Market Commentary Week Ending 2/5/2021

Long-term 30-year yields have risen to 1.983%, the 10-year is currently yielding 1.182%, and the Fannie Mae 30-year current-coupon spread to the 5/10-year blend tightened to +65. The spread from the current coupon to Treasuries is the lowest in more than 19 months while yields on Treasuries closed at their highest in more than 10 months.

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MBS Weekly Market Commentary Week Ending 1/8/2021

Last week’s Treasury selloff marked the quickest reversal in government debt yields since the collapse in March. The prospect of a unified Democratic representation in Federal offices fueled stimulus bets and contributed to a further steepening yield curve (See 5-30 Year Spread). Long-term 30-year yields have risen to 1.875%. The 10-year is currently yielding to 1.117%. The Fannie Mae 30-year current-coupon spread to the 5/10-year blend tightened to +67, the lowest in 18 months.

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MBS Weekly Market Commentary Week Ending 11/27/2020

Intermediate Treasury yields fell 2bps to 0.83% to finish out the week. The 30-year Treasury is currently yielding 1.56%, relatively unchanged from the start of the week. The Fannie Mae 30-year current coupon spread to the 5/10 year blended widened 1bp to +76.

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MBS Weekly Market Commentary Week Ending 11/13/2020

The 10-year Treasury yield rose to 0 .98% to begin last week, following the announcement of Biden’s victory. However, uncertainty continues to plague markets due to the absence of a standard concession and continued accusations of fraudulent voting. The uncertainty caused the 10-year to retreat to 0.89% by Friday. The spread between the 10-year Treasury to the 5/10-year blend has tightened 3bps to +72.

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MBS Weekly Market Commentary Week Ending 10/30/2020

The 10-year Treasury yield rose to 0.85%, 5bps higher than start of last week. The 30-year Treasury is currently yielding 1.63%. The Fannie Mae 30-year current-coupon spread to the 5/10-year blend tightened 1bp to +80. Volatility has risen to its highest levels in about six months.

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MBS Weekly Market Commentary Week Ending 10/23/2020

Intermediate and long-term Treasury yields crept up 10-12bps last week. The 30-year Treasury is currently yielding 1.61% and the 10-year is 0.84%. The sell-off in Treasuries was induced by increasing expectations for a stimulus package either passed before the election (unlikely), or by a democratic win in the election based on recent polls.

The Fannie Mae 30-year current-coupon spread to the 5/10-year blend tightened 2 basis points to +79 as the U.S. Treasury 10-year yield rose 3 basis points to 0.86%. The spread between FNMA 30-year 2 and the 10-year Treasury is the lowest its been in 15 months.

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MBS Weekly Market Commentary Week Ending 10/03/2020

The 10-year Treasury closed 2bps higher on Friday and is currently yielding 0.69%. The 30-year Treasury also increased 3bps to 1.48%. 10-year TIPS yield tightened 1bp to -0.94%.

MBA’s weekly mortgage applications index fell 4.8% in the week ended Sept. 25 after rising 6.8% in the prior week. Purchases were down 1.9% and refinances fell 6.5% after rising 3.4% and 8.8% respectively, in the previous week. The average 30-year fixed rate is 3.05% – the lowest in survey history, according to the MBA. Compared to last year, 30-year fixed rates are down 77bps. Freddie Mac’s 30-Yr FRM is currently 2.88%, down 2bps since last week. Also notable, pending home sales jumped 8.8% in August, following a 5.9% increase in July.

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MBS Weekly Market Commentary Week Ending 09/11/2020

Treasury yields remain relatively unchanged despite minor fluctuations in both directions over the last two weeks. The Treasury yield curve steepened slightly with the 2-10 spread widening (by 4bps) to 0.54. The 10-year yield is currently 0.67%, and the 30-year is...

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