Bond markets were just slightly stronger overnight.  Tradeflows in Treasuries haven't been infinitely more robust than Thursday or Friday, but they are showing the expected signs of life.  MBS haven't been much more active than last week, but liquidity has improved.  This helps MBS keep better pace with Treasury movements.

Both began the session modestly improved compared to Friday's latest levels.  The slightly weaker ISM Non-Manufacturing data led to further improvements.  Treasuries made it to their lowest yields since the overnight session of Dec 26 and MBS have just barely matched their 2-week high seen on Thursday (103-07 in Fannie 4.0).

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
95-09 : +0-10
FNMA 3.5
99-21 : +0-08
FNMA 4.0
103-07 : +0-07
Treasuries
2 YR
0.3967 : +0.0007
10 YR
2.9595 : -0.0355
30 YR
3.8921 : -0.0399
Pricing as of 1/6/14 12:08PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:13AM  :  ECON: ISM Services Weaker Than Expected; Bond Markets Improve
9:27AM  :  Bond Markets Stronger Overnight; Some Resistance at Thursday's Best Levels
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Frank Hanna  :  "Nice spike there. MG should we expect volumes to return to normal more this week?"
Matt Hodges  :  "imho, volumes should return now that the holidays are over and varsity is back"
Matt Hodges  :  "i rec'd a message from a trader on wall street - he said he was one of the only senior traders around last week"
Matthew Graham  :  "Hodges is correct. It already began somewhat last week, but between the snow storm and overseas absences, it was barely noticeable. Read the Day Ahead though. That's pretty much the topic."
Matthew Graham  :  "RTRS- ISM REPORT ON U.S. NON-MANUFACTURING SECTOR SHOWS PMI AT 53.0 IN DECEMBER (CONSENSUS 54.5) VS 53.9 IN NOV "
Matthew Graham  :  "RTRS- ISM NON-MANUFACTURING EMPLOYMENT INDEX 55.8 IN DECEMBER VS 52.5 IN NOV "
Victor Burek  :  "it is nice to see this green with the senior traders back from holiday"