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Modest Negative Reprice Risk For a Few Lenders

Following this morning's first MBS buying operation, sellers were left holding the bag (or at least more bags than they thought they'd be holding).  That resulted in a bit of a fire sale in the past 20 minutes that took MBS down another 2-3 ticks (.06-.09), making for a total loss of 0.19 from the morning's highs.

A few lenders might see this as justification for negative reprices, but for the average lender, this is either too early to matter (many aren't out with rates yet) or simply not enough movement.

MBS / Treasury Market Data

UMBS 5.5
98.72
+0.25
UMBS 6.0
100.39
+0.19
UMBS 6.5
101.81
+0.11
2 YR
4.7163
-0.0249
10 YR
4.3602
-0.0724
Pricing as of: 7/3 5:59PM EST
This Mortgage Market Alert is provided in partnership with MBS Live and provided exclusively to MBS Live Subcribers.