Very little has happened so far on this holiday-shortened Friday (Monday's the holiday, but MBS/Treasuries close 3 hours early today).  The lack of activity will be doubly true from here until 2pm.  As such, this "mid-day" will also serve as the day's recap unless there's a substantial change in market conditions over the next 2 hours.

Treasuries traded just slightly stronger overnight, but improved most during the first hour of the domestic session.  Market movers are impossible to pin down with certainty, but the fact that rates are adhering to the technical consolidation pattern in place since May 15th is as good as any.

In other words, Treasuries and MBS have been in tight, consolidative trading ranges since hitting the year's best levels on the 15th, and today's strength merely serves to keep them in those ranges. 

New Home Sales data had no effect, though bond markets did extend gains heading into the 11am hour, possibly with an eye toward comments out of Russia regarding a "classified document with retaliatory measures to western sanctions."  It could just as easily be trading necessities relating to today's Treasury options expiration.  The point is that while trading levels remain in that consolidative range, it doesn't much matter.

After moving to new lows just under 2.52 at 11am, 10yr yields are back up to 2.53.  Fannie 3.5s were up to 102-21 at their highs, but are back down to 102-19 currently.

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
98-13 : +0-06
FNMA 3.5
102-19 : +0-05
FNMA 4.0
105-21 : +0-04
2 YR
0.3424 : -0.0046
10 YR
2.5303 : -0.0247
30 YR
3.3950 : -0.0340
Pricing as of 5/23/14 11:50AMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:09AM  :  New Home Sales Slightly Stronger; Previous Reading Revised Higher
9:27AM  :  Bond Markets Mostly Flat Overnight; Stronger This Morning

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "with a short day, and a 3 day weekend, i doubt lenders will be real aggressive with rate sheets this morning"
Matthew Graham  :  "We had weaker econ data and bond market losses yesterday. I would have been locking too with rate sheets the 2nd best of the year."
Matthew Graham  :  "RTRS- US APRIL SINGLE-FAMILY HOME SALES 433,000 UNIT ANN. RATE (CONS. 425,000) VS MARCH 407,000 UNIT RATE (PREV 384,000)"
Ted Rood  :  "Markets seem to be taking these remarkable gains with a hefty dose of skepticism."
Victor Burek  :  "numbers were better, but still horrible"