MBS Live: MBS Morning Market Summary
Domestic bond markets took most of their short term directional cues from European events overnight, though the broader themes set the limits of the range.  Case in point German Bund yields of 1.30 lined up fairly well with US 10yr yields of 1.61 late Friday morning heading into the EU closes.  Whereas Bunds rallied down to 1.26 at the start of the EU session, 10yr yields never went lower than 1.60, hinting at some resistance to further gains, despite the clearly correlated small-scale movement.  The uncertainty over the Fed's Announcement on Wednesday as well as the need to accommodate a round of Treasury auctions this week could both be weighing on bond-bullish sentiment.  Then, of course, there's the constantly looming threat of Fiscal Cliff headlines where comments from Bob Corker helped reinforce the resistance to further gains, adding to the the hopes that a deal can be reached.
MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
105-06 : +0-04
FNMA 3.5
106-25 : +0-02
FNMA 4.0
107-06 : +0-00
FNMA 4.5
107-29 : -0-01
GNMA 3.0
106-18 : +0-03
GNMA 3.5
108-21 : +0-01
GNMA 4.0
109-17 : +0-01
GNMA 4.5
109-12 : +0-03
104-28 : +0-04
106-13 : +0-02
106-24 : +0-02
106-31 : -0-05
Pricing as of 11:04 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.

9:53AM  :  Bond Markets Slightly Stronger On European Headlines
Bond markets continue to trade in their post-NFP ranges, though both MBS and Treasuries are on the stronger end of those ranges. December Fannie 3.0 MBS are up 5 ticks at 105-07 for their farewell performance (MBS ROLL Tonight) and 10yr yields are down about 1.5bps at 1.608.

Italian political uncertainty and Greece's labored efforts to get to the finish line with bailout requirements helped German Bund yields moved down a quick 4 bps at their open, with US Treasuries and stock prices following. Italy's Prime Minister says he will resign after the 2013 budget is passed, which is viewed as a net-negative for Italian austerity measures.

Spain's Economy Minister himself, noted that pressure on Italian bond markets overnight was weighing on Spanish debt as well as the fact that Spain has no plans for additional austerity measures. Yields in both countries rose while Greece extended it's debt buyback offer in order to reach it's €30 bln target required for Thursday's check-signing (currently over €26 bln, so failure isn't likely, but an outside possibility adding to the drama).

There's no relevant economic data this morning and the events later in the week already look to be keeping the trading range compressed in domestic bond markets. Treasuries have continued to hover around 1.61 despite rising stock prices and a full reversal in German Bunds. S&P's are now up a few points from Friday's close.

We're keeping an eye on the 1.613 pivot in 10yr yields from the overnight session. A break higher although not incredibly significant, would be a break of the overnight inflection point and even if it isn't a prelude to a sell-off, could at least reinforce resistance to further improvements. MBS may have already found that resistance with a rejection of a break into Thursday afternoon's lows at 105-07.
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.

Dean Gorenflo  :  "It states on the 1003 that "the lender is required to note the information on the basis of a visual observation and surname if you have made this application in PERSON." If your 1003 is marked as anything other than face-to-face you should not have to furnish."
Jason Zimmer  :  "yes they can, but you still have to guess."
Chip Harris  :  "So the borrower cannot check the "I do not wish to furnish" box?"
Jason Zimmer  :  "But as Ira would say, that's a question fro your compliance officer."
Chip Harris  :  "Can a lender force a LO to guess at HMDA info on a final closing which he did not attend in person?"
Jason Anker  :  "Wells loves to use Temp Buy downs in the marketing so confirm its not a 30 fixed with a temp buy down. Mnay times the temp buy down is builder funded"
Gus Floropoulos  :  "I agree with Ryan S, they have internal portfolio products that are extremely aggressive"

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