In several ways, today is/was something of a warm up for the rest of the week.  In fact, tomorrow could be similar in that the biggest events of the week don't start hitting until Wednesday.

Today's data, ISM Non-Manufacturing, is no slouch though, and was perfectly capable of helping bond markets add to overnight gains when it arrived weaker-than-expected at 10am.  That bit of connectivity between data and trading levels was nice to see for a change, but the movement fell far short of extreme.

By the afternoon, MBS topped out at 103-11 in Fannie 4.0s and hit highs most frequently at 103-09, just 2 ticks over Thursday's 103-07 highs.  There was a small, temporary swoon heading into 3pm resulting in one negative reprice.  Prices held their ground from there on out and we're currently heading toward the door about a quarter of a point improved in MBS.

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
95-07 : +0-08
FNMA 3.5
99-21 : +0-09
FNMA 4.0
103-08 : +0-08
2 YR
0.3967 : +0.0007
10 YR
2.9595 : -0.0355
30 YR
3.9003 : -0.0317
Pricing as of 1/6/14 4:37PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:06PM  :  Off Highs But Assessing Support; Further Weakness Connotes Some Reprice Risk
12:50PM  :  MBS Hit New 2-Week Highs; Favorable Treasury Technicals
10:13AM  :  ECON: ISM Services Weaker Than Expected; Bond Markets Improve
9:27AM  :  Bond Markets Stronger Overnight; Some Resistance at Thursday's Best Levels

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Joe Bydzovsky  :  "Anyone familiar with the FHA "Back to Work" Program? I've read through all mortgagee letters on this and I am looking for clarification on waiting period for foreclosure on a FHA mortgage. Actual foreclosure was 10/2012 but claim paid by HUD in 12/2013. I know a standard FHA is 3yrs from claim date but the "Back to work" program only mentions foreclosure date and a 12mo clean history.. it doesn't specifically mention previous FHA foreclosures. "
Jason York  :  "for the FHA foreclosure, it will be 1 yr since the time FHA filed the claim, so make sure you look that up, also you will have to request a CAIVRS waiver to get their CAIVRS cleared"
Grant Menard  :  "Correct 1 year Joe and I had to prove that he had a drop in income with prior years tax return and W2. "
Matthew Graham  :  "Here's a chart for JA's Head and Shoulders question earlier."
John Toepfer  :  "Hugh Page - "consequences of the unwind"...could you elaborate. We saw the consequences of mere talk of taper and the uncertainty; what is your prognosis?"
Hugh W. Page  :  "What I meant was it seems logical that rates are going higher, however, since this is a grand experiment the Fed has been implementing no one is certain how it all turns out. Potential consequences of the unwind are many and range from benign to potentially seriously problematic (and likely somewhere in the middle)."
Robert Rippy  :  "I just pulled credit on a borrower and under the mortgage is says "Loan modified under federal government plan". Am i correct to assume that this loan would not be eligible for a HARP refinance?"
danielsmall  :  "it can be done"
Jason Anker  :  "yes it can be done, you need a copy of the modification paperwork eligability depends on what was modified"
Victor Burek  :  "if loan amount was reduced, would that be allowed?"
Jason Anker  :  "principal reduction is a no go"