2/18/10

Most rate prices are worse today as mortgage bonds continue yesterday’s slide into negative territory after the FOMC minutes headline highlighted some members’ preference for selling MBS sooner than later. The selloff trend has extended after the release of bond unfriendly data in the form of higher producer prices, better than expected manufacturing and leading economic indicator data. The benchmark 10-year Treasury yield has broken through its resistance level and is now pushing 3.80%. We’re in open waters folks so be careful as selloffs can take on a life of their own. Lenders are in the middle of re-prices as we type. Stock market indices are slightly positive as this is really a bond story ahead of the Fed’s exit and the anxiety of valuations when the private market has to come back to the table…