Date: Thursday, June 11, 2009, 8:59 AM
MBS prices are down -1/32 (FNMA 30-yr 5.0 at 99.16), which is about 12/32 lower than yesterday at this time. Unfavorable repricing took place yesterday. The 30-yr fixed FNMA required net yield (60 day) is now at 5.59%, from 5.48% yesterday, and up from 4.91% on June 1.
After an early dip, it has been a quiet morning so far. May Retail Sales rose 0.5% from April, matching the consensus forecast. Retail Sales ex-autos also rose 0.5%, which was stronger than expected. Weekly Jobless Claims came in a little lower than the consensus at 601K. Continuing Jobless Claims rose to a 19th straight record high. The Dow is up 100 points. No more economic data will be released today. A 30-yr Treasury auction will take place at 1:00PM.
Date: Thursday, June 11, 2009, 9:45 AM
As expected the market was off early as much as -6/32, but by mid morning has improved back to +11/32. We do expect favorable re-pricing if this continues through the afternoon. Jobless Claims did stop the run off. Regardless we do expect rates to be at least stable for today. 30 year fixed conforming are holding at 5.625%, and Government prices are slightly higher at 5.750%. Jumbo fixed prices are unstable at best for now, and Adjustable rate jumbo’s are more stable.
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