MBS Live: MBS Morning Market Summary
If this isn't the first time, then it's one of a precious few where we've deigned to mention Detroit's bankruptcy saga, but there's a chance that it's having an effect today.  It's all too easy to jump to conclusions about market movement cause and effect, and to be sure, there is a decent enough chance that bond markets were headed into stronger territory after bouncing at 10am anyway.  But it's not impossible that they benefited from some of the flight-to-safety that looks to have been going on heading into the 11am hour.  It was far more apparent in equities, however, with the S&P shedding a quick 7 points. 

Beyond all that, the morning's losses and subsequent gains have been fairly inconsequential.  MBS never dipped into negative territory, and they haven't now surpassed yesterday's highs.  Pretty ho-hum, but better than the seemingly frequent "big, nasty sell-offs" we've been seeing.
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
96-01 : +0-04
FNMA 3.5
100-14 : +0-04
FNMA 4.0
104-01 : +0-02
FNMA 4.5
106-18 : +0-02
GNMA 3.0
97-04 : +0-03
GNMA 3.5
101-18 : +0-03
GNMA 4.0
104-31 : +0-04
GNMA 4.5
107-08 : +0-03
95-19 : +0-04
100-07 : +0-04
103-21 : +0-02
106-11 : +0-02
Pricing as of 11:05 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.

10:04AM  :  ALERT ISSUED: MBS at Lows; Negative Reprice Risk Increasing
MBS and Treasuries both put in their best levels of the morning at 9am. They'd weakened moderately at first, but have been more serious about it in the past 10 minutes. Fannie 3.5s are far enough off from a few early lenders' rate sheet print times that negative reprices can't be ruled out (6 ticks off highs, currently still +1 on the day at 100-12). 10yr yields are up to 2.784 from 2.765 earlier.
9:17AM  :  Bond Markets Hold Ground Overnight, Extending Gains in Light Volume
Treasuries trickled sideways to begin the overnight session with yields never going higher than Monday's highest. 10's began improving into European hours despite German Bunds making new yield highs.

Volume has been light in the absence of significant data or events. Both the domestic and overseas accounts that are trading have treated 2.81% in 10yr yields as supportive ceiling pending more compelling reasons for weakness.

As such, if yields aren't moving higher, they're moving lower--albeit modestly. 10's are down to 2.768, Fannie 3.5s are up 6 ticks to 100-16 and Fannie 4.0s are up 4 ticks at 104-03. Again, there is nothing significant on the calendar today and so far, it's turning out to be a modest, corrective bounce back against yesterday's data-driven weakness.
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.

Michael Gillani  :  "MBS lagging treasuries?"
Ira Selwin  :  "Everyone here wants days like this, and improvements"
Ira Selwin  :  "so its not oh well for anyone here"
Ira Selwin  :  "Again, no one here wants it to "go back down""
William Packer  :  "i guess nothing moves in a straight line, 17 ticks down, get 3-6 back, then go back down again perhaps. oh well. congrats and happy green day"

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