Market participation was pathetic yesterday--the lightest session since at least April.  Today was merely "average" but that's a huge improvement over yesterday. 

As markets regained a pulse, it beat steadily toward lower bond yields--thus confirming the bounce off 2.66% 10yr yields. This started in Europe as weak economic data helped EU debt rally and hurt stock averages in relative lock-step. 

Treasuries followed all of the above and US equities joined in more noticeably after the 930am stock open.  Everything moved lower together (stock prices and bond yields) through the close of the European session at which point the markets remaining open simply leveled-off or reversed.

This isn't to say that Europe is/was the only reason US bond yields and stock prices fell today, but it is certainly to say that it was enough to tip the scales in that direction.

MBS were NOT able to keep pace with the rest of the move and Fannie 3.5s are heading out only 6 ticks higher vs a 16 tick gain in 10yr Treasury prices.

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 : +0-09
FNMA 3.5
102-11 : +0-06
FNMA 4.0
105-20 : +0-05
2 YR
0.5079 : -0.0081
10 YR
2.5612 : -0.0558
30 YR
3.3773 : -0.0617
Pricing as of 7/8/14 4:38PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:04AM  :  Bond Rally Continues as Stocks Open Weaker; Europe Still Helping
9:06AM  :  Bond Buying Trend Continues Overnight and Into Domestic Session

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "yeah, so basically its 4 years because no one does extenuating circumstances"
John Paul Mulchay  :  "for Short Sale. Changing to 4"
Jason Anker  :  "Deed-in-lieu of Foreclosure and Preforeclosure Sale Message Updates The waiting period requirements for borrowers who have had a previous deed-in-lieu of foreclosure or preforeclosure sale are being updated to now require a four-year waiting period; though a two-year waiting period will be permitted if the event was due to extenuating circumstances and the loan complies with all requirements specific to a deed-in-lieu of foreclosure or a preforeclosure sale due to extenuating circumstances, as specified in the Fannie Mae Selling Guide. The loan-to-value restrictions previously tied to different waiting period timeframes are also being removed."
Caroline Roy  :  "what is the short sale seasoning change? yesterday i just had a customer want to get prequal'd with one a few years back"
Matthew Graham  :  "RTRS- U.S. 3-YEAR NOTES BID-TO-COVER RATIO 3.38, NON-COMP BIDS $74.14 MLN"
Scott Valins  :  "maybe LP to 50.4 since they round down but otherwise never Morgan"
Morgan Hammer  :  "Anyone seen LP or DU take over 49.99 DTI? 25% LTV with a 760+ credit"