MS' Jay Bacow and Michael Ortiz have the.....>

US MBS: MS' Jay Bacow and Michael Ortiz have the wittiest pun of the week in

their MBS commentary as they state, "Un-Break My HARP, Say You'll Refi Again",

an allusion to the "Un-Break My Heart" pop song. (But then again they also had a

strong witty comment Thursday, then they quipped on HARP extension, "My HARP

will Go On and On and On.." referring to the Titanic film them song.)

- They add the "HARP got extended through the end of 2018 and the new streamline

program will go into effect in Oct 2017 (though refis can't start until 2019)."

They add on MBS that "despite the flight-to-quality rally this week during which

most risk assets underperformed, mortgages held in well and tightened slightly

on both ZV and TOAS metrics as interest rate volatility fell. The FOMC minutes

suggested a committee more divided on inflation and financial conditions than

the market expected. However, in our view, it is now clear that the Fed will

announce tapering reinvestments of mortgages and treasuries in their September

meeting. G2/FN swaps held in initially in the rally, though they are struggling

today."