Bond markets limped across the finish line near the lowest levels of the week.  As expected, there was no major drama and the only real unpleasantness was the moderate underperformance on the part of MBS due to a heavy day of origination supply.  Even then, the same thing can be said for both MBS and Treasuries: today's range was narrow, slightly stronger than Wednesday and notably weaker than everything before.

The morning data was fairly uneventful, though we're left to wonder if that would have been the case if it was unified in its message.  As it stands, 2 of the reports were slightly stronger (Imports/Exports and Consumer Sentiment) while one was exceptionally weaker (Industrial Production).  It was the weak report that garnered the biggest reaction (or "only" reaction, as the case may be), but it wasn't enough to get MBS or Treasuries back into positive territory.  As such, we're left to consider whether the negative predisposition has a meaning or if bonds just targeted the most neutral zone possible ahead of the 3-day weekend.  With 10yr yields smack dab on their 21-day moving average, probably the latter.

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
96-13 : -0-09
FNMA 3.5
100-21 : -0-09
FNMA 4.0
104-05 : -0-07
2 YR
0.3147 : +-0.0003
10 YR
2.7446 : +0.0086
30 YR
3.6986 : +0.0136
Pricing as of 2/14/14 6:46PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:29AM  :  ALERT ISSUED: MBS Hit New Lows; On The Edge of Negative Reprice Risk
9:30AM  :  Industrial Production Much Weaker; Weather Cited; Bonds Rally Anyway
9:07AM  :  Bond Markets Unchanged Overnight, Weaker After CME Open, Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Clayton Sandy  :  "Has jumbo pricing totally tanked the last couple days? Thinking that OB is giving me wrong pricing again. We were in the low 4's, but now we're close to 5% in only a couple days. Pretty sure it's incorrect"
Nathan Stotlar  :  "CS - Can't be right. I have seen some lenders actually improve. 4.125% - 4.375%"
Andy Pada, Jr.  :  "I'm sure this was touched upon, but what is the minimum credit score requirement for FHA/HUD?"
Christopher Stevens  :  "Wells non-QM being featured on CNBC..."are sub prime loans back" is the headline."
Andy Pada, Jr.  :  "Seems to me that Wells is simply lowering their credit score overly on fha"

Economic Calendar
Time Event Period Actual Forecast Prior
Monday, Feb 17
0:00 Presidents Day *