• Very little movement overnight across multiple asset classes
  • ADP helped bonds slightly out of the gate
  • Tradeflows and late-morning economic data made a dent, but bonds recovered
  • Modest gains keep technical momentum intact

Today was the right kind of quiet.  Bonds only needed to stay in roughly unchanged territory in order to add confirmation to several technical indicators that recently turned positive. The 2 tick gain in MBS and 2bp gain in Treasury yields fits the bill.

The overnight session was exceptionally calm and resulted in bond markets beginning the day right about where they left off yesterday.  ADP employment data came out weaker than expected and helped bonds make decent gains, but they soon found resistance and moved in the other direction heading into the stock market open.

Stronger inflation numbers within the ISM Non-Manufacturing report added to the negative momentum, but bonds quickly put their foot down without breaking through yesterday's range.  The rest of the day was spent drifting back toward the days stronger levels without any fanfare whatsoever.  

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
102-20 : +0-01
Treasuries
10 YR
1.7770 : -0.0230
Pricing as of 5/4/16 5:35PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:03AM  :  ALERT ISSUED: Negative Reprice Risk Increasing After ISM Data
8:42AM  :  Bond Markets Marginally Stronger After ADP Data
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "not in public"
Nathan Miller  :  "can we call you coach?"
Timothy Baron  :  "I keep forgetting to mention - I love the huddle, MG."
Matthew Graham  :  "not very many unless things change. no lender can be any more than 3 ticks from rate sheets if we're at 102-19 with a 102-16 to 102-22 range"
Oliver Orlicki  :  "Any chance of RP's today?"
Blake Carrillo  :  "JM Many builders work on lines of credit and require a certain number of builds per year to make ends meat and each build can dictate the progress of another. As such, Builders will pay incentive to work with a lender who they know has their best interests in mind and most importantly, who are accountable to them beyond a singular deal. In this regard, it is certainly an understandable motive."
Matt Hodges  :  "JM: its required on Ryan Homes here, but smart Realtors can get incentives for a non-builder lender as well. It's legal"
Joel Marks  :  "Client is in contract on new construction and he is using me for the loan. I will get them a full approval by their deadline. Still, the builder is requiring him to meet with their lender who is dangling $5000. I know it's been discussed here before, but it all seems so wrong on so many levels."