Mortgage Market Daily Snapshot 4/24/12
Today opened up with a little bump to yesterdays close as the opening bell brought a +3bps gain pushing the FNMA 3.5 coupon to 103.750 however that was fleeting and the only gain for the Rate driving bell weather bond for the days trading session.
As the day progressed sell off appeared and at the close it reached its low of the day (not a good sign for the trading session tomorrow)
Ultimately the FNMA coupon lost 27bps and ended just below the 103.5 mark. If we fall too much further I expect to see a potential repeat of today and a possible close could see the 103.25 range. The 10yr Treasury followed suit with a -10/32 loss pushing its yield up to 1.971.
Mixed news and a so so 2yr auction helped push a potential correction from erasing a 6 day run of gains. Tomorrows 5yr auction and durable orders reports could be the catalyst to bring the Treasury and FNMA coupon back to its recent position of gains or it could add to today's losses.
Please return to your seats and fasten the seat belts the ride will likely be a bit bumpy...
Lock if closing in under 14 days and watch closely or lock if closing in 30 days or less (my opinion)
Make it a great and positive day...
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