Posted To: MBS Commentary
Our typical definition of “repricing” has to do with mortgage lender reprices, but the term has always existed beyond our little corner of the market. There are times when the general price environment is stable for certain assets and there are times when something comes along that forces a rethink of that price environment. In this case, it’s a rethink of the Treasury yield curve following Wednesday’s updated dot plot. In a nutshell, longer-dated Treasuries are doing very well and shorter-dated Treasuries are tanking. MBS are going to underperform the 10yr benchmark in this environment (though they’re outperforming 5yr Treasuries). Comments from Fed’s Bullard aren’t helping. For those who see the word ” benchmark ” and wonder what it means, just think…(read more)
