It's been a slow morning so far, and utterly lacking in overt inspiration.  More simply put, we haven't seen any movement in Treasuries or MBS linked to a specific headline or event.

Instead, trading essentially picked up where Friday left off, and every session since May 7ths has seen "higher lows" and "higher highs."  This is very much in line with the negative technical landscape that emerged last week.  Today's weakness has quickly taken trading levels back to middle ground in the longer term range (used to be 2.70, but now closer to 2.65).

MBS are holding up a bit better than 10yr Treasuries.  Fannie 3.5s are down 6 ticks at 101-20 and 4.0s are down 5/32nds at 104-24.  On a positive note, of the two prominent bouts of weakness this morning, the second one wasn't as severe, suggesting technical support at the day's high Treasury yields (2.66).  Keep in mind though, "support" doesn't mean yields can't go higher, simply that they have a fighting chance.  The analogous level in MBS is 101-17 to 101-18 in Fannie 3.5s.

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
97-14 : -0-08
FNMA 3.5
101-20 : -0-07
FNMA 4.0
104-23 : -0-06
2 YR
0.3910 : +0.0080
10 YR
2.6521 : +0.0291
30 YR
3.4873 : +0.0213
Pricing as of 5/12/14 11:58AMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:26AM  :  Quick, Small Jump to Weakest Levels; Not Enough For Significant Reprice Risk
9:12AM  :  Mostly Holding Ground After Extending Overnight Weakness

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Oliver Orlicki  :  "great week ahead mg"
Hugh W. Page  :  "gm yes excellent week ahead "