loan pricing

Here’s What’s Up With These Big Swings in MBS Prices Thursday ended up being a boring, uneventful trading day as far as the broader bond market was concerned.  It wasn’t without interesting developments though.  One of them directly impacts loan pricing going forward (at some point in the near future when lenders update their rates accordingly) due to revamped LLPAs.  The other is more of an ongoing phenomenon: a lack of liquidity in MBS at various moments of any given day.  Don’t confuse this with a lack of willing buyers.  They’re out there.  Rather, it’s about the way that market participants enter prices quotes and how that risks giving the wrong impression to those of us who are simply interested in tracking intraday rate sheet risks. Econ Data / Events Jobless Claims  190k vs 214k f’cast, 205k prev Philly Fed Biz Index -8.9 vs -11.0 f’cast, -13.7 prev Prices 24.5 vs 36.3 prev Jobs 10.9 vs -0.9 prev 6-mo outlook 4.9 vs -0.9 prev Market Movement Recap 08:48 AM Modestly weaker overnight, slight recovery early and back to worst levels after data.  10yr up 3.5bps at 3.41.  MBS down a quarter point. 01:33 PM Slightly weaker vs AM levels.  10yr up 3.7bps at 3.41 and MBS down just under a quarter point.  03:10 PM Sideways grind of a day despite liquidity-driven volatility in MBS.  Currently down just over an eighth.  10yr up 2.6bps at 3.399.