Although it's true that bond markets moved into weaker territory after this morning's data, it's even more true that the weakness looks like a mere continuation of yesterday's.  In other words, this move began just after 10am yesterday when Fannie 3.5s made it within 1 tick of 103-00 and 10yr yields dipped briefly into the 2.47's. 

2014-5-16 mbs and treasuries

Stronger Housing Starts data contributed to the move, but given the counterpoints (super high multi-family component and not much growth in single-fam), markets would have been within their right to trade in the other direction if they were so inclined.  The missing ingredient for trading in the other direction was the absence of another European bond market rally.   In a general sense, markets agreed that the super-aggressive rally would take a break today.  We didn't really see enough of a move in the other direction to conclude that a big bounce is about to happen, but perhaps just enough to be worried about next week.

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
98-09 : -0-08
FNMA 3.5
102-09 : -0-09
FNMA 4.0
105-09 : -0-06
2 YR
0.3629 : +0.0039
10 YR
2.5231 : +0.0211
30 YR
3.3476 : +0.0096
Pricing as of 5/16/14 3:58PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:22PM  :  Uneventful Afternoon; Reprices Risk/Potential is Muted; Silly Bullard
11:33AM  :  ALERT ISSUED: MBS at Weakest Levels; Not Much Reprice Risk Unless we Move Lower
10:05AM  :  Consumer Sentiment Weaker Than Expected; Limited Response in Bond Markets
8:40AM  :  Bond Markets Losing Ground After Stronger Housing Starts Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ryan Ford  :  "Wow, I just priced out a Jumbo loan at 80% LTV, 1.2 MM Loan Amount, 30 Yr. Fixed at 4.875% w Lender Paid Comp of 1.5%. That's incredible!"
Clayton Sandy  :  "you mean 3.875%?"
Ryan Ford  :  "HaHa Clayton, one can dream! I would take something in the 4s all day long if I were a Jumbo buyer"
Matt Hodges  :  "i locked a r/t $590, 65% ltv (true jumbo) C30 at 4.125% 0/0 today. happy with that"