MBS Live: MBS Morning Market Summary
So far, the morning has been as uneventful as expected with no scheduled data or events on the domestic calendar.  That said, bond markets continue to trade in better territory than where they left off on Friday afternoon, putting them at their strongest levels in well over a month.  The stronger opening levels were courtesy of overnight events in Europe which included weak economic data and political uncertainty stemming from elections in France and Holland.  Additionally, it's fair to assume that some changes in trading positions ahead of Wednesday's FOMC will play a role in determining market movement today and tomorrow.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.5
103-25 : +0-07
FNMA 4.0
105-22 : +0-04
FNMA 4.5
107-00 : +0-02
FNMA 5.0
108-18 : +0-02
GNMA 3.5
105-11 : +0-07
GNMA 4.0
108-05 : +0-04
GNMA 4.5
109-15 : +0-03
GNMA 5.0
110-26 : +0-01
103-18 : +0-06
105-10 : +0-04
106-17 : +0-02
108-01 : +0-01
Pricing as of 11:08 AM EST
Morning Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this morning.

9:38AM  :  ALERT ISSUED: Bond Markets Begin Week Stronger, Already Forging New Range
After holding in a clearly defined range for 2 weeks, the current week was expected to play host to a break of that range. In grand, symbolic fashion, the very first levels encountered this week are firmly outside the range.

Thankfully, "outside the range" means "in better territory" this morning. Overnight events and data out of Europe--and to a lesser extent, Asia--kicked things off. Bond price positivity was courtesy of European negativity as manufacturing data was weaker and election uncertainty lingers for France and Holland.

10yr yields have been in the 1.92's most of the morning and Fannie 3.5 MBS currently trade at 103-24. There are no major scheduled economic events for the day, so bond markets have less guidance than they otherwise might. On occasion, that leads to yields being more noticeably connected to stock prices.

This time around, and although we are already seeing the previous range broken and expecting a range-break in general, bond markets' desire to extend the current rally could be generally lessened by the impending FOMC information on Wednesday. In other words, a little testing of recently untested frontiers makes good sense, but aggressive, directional momentum into stronger territory would be harder to reconcile until markets have Wednesday's FOMC-related events in the rearview.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.

Jason Wilborn  :  "and the EU will be on the ropes for sure"
Jason Wilborn  :  "couple that with the Big Fat Greek Elections next month"
Jason Wilborn  :  "I call this the Sarkousted rally"
Brett Boyke  :  "CNBC - Dutch Cabinet Resigns After Austerity Talks Fail "
Jeff Anderson  :  "Equities taking a Metta World Peace elbow to the noggin this AM."
Andrew Horowitz  :  "if? how about when Owl"
Chris Kopec  :  "French elections on May 6 could be huge market mover if Hollande defeats Sarkozy. http://bostonherald.com/news/international/europe/view/20120423francois_hollande__enjoys_upper_hand_in_french_elections"
Matthew Graham  :  "meeting starts tomorrow, announcement etc on Wed"
Tony Cardinal  :  "Gm all. Fed talking tue n wed this week?"

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