Today is one of those days where Treasury movements definitely do not tell the story for MBS.  Today's Senate headlines on the upcoming Fannie/Freddie wind-down bill combined with monthly settlement flows made for a lot of variation between MBS Prices and Treasuries.  That was almost an exclusively negative affair in the morning as MBS underperformed significantly. 

While both sides of the market were weaker at 10:30am, Treasuries embarked on a nice bounce back while MBS didn't really catch on until after 1pm.  By that time, 10yr yields were already back in positive territory.  MBS were still 5 ticks weaker. 

The Treasury rally progressed into the afternoon as equities continued selling-off.  MBS were more willing to come along for that ride, and ultimately moved back within 1 tick of unchanged on the day.  A few lenders repriced negatively in the morning, and fewer still--positively in the afternoon. 

Here's a look at MBS Prices vs Treasury Futures prices to illustrate the underperformance surrounding the Senate headlines and subsequent reluctance to bounce back.

2014-3-11 mbs vs treasuries

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
96-12 : +0-00
FNMA 3.5
100-23 : -0-01
FNMA 4.0
104-08 : -0-02
2 YR
0.3737 : +0.0007
10 YR
2.7698 : -0.0142
30 YR
3.7092 : -0.0198
Pricing as of 3/11/14 3:41PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:44PM  :  MBS Recover Modestly as Treasuries Push Into Best Levels
1:16PM  :  Treasuries OK, MBS Less so, but Sideways for now
10:21AM  :  ALERT ISSUED: MBS Fall Quickly to Lows After Senate GSE Deal Announcement
9:14AM  :  Bond Markets Sharply Sideways Overnight, Little-Changed This AM

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matt Hodges  :  "so, i'm stepping out on a financial limb, but IF Frannie were wound down, as Senate wishes to do, perhaps, wouldn't the smart move be to sell the operations/staffing/architecture to another financial services company for a premium of stock price?"