Bond markets have been stronger today, and have carved out a linear trend of improvements from morning price levels.  Interestingly enough, this strength is not something that's easily pinned on Europe or other overt factors.  Treasuries have outperformed German Bunds (not something we'd be as likely to see if the strength was EU-led). 

While weakness in equities could be part of the explanation, Treasuries are clearly marching to the beat of their own drum to a large extent.  This leaves us with only tradeflows and technicals to credit for the strength.  And from that technical standpoint, most mainstream studies suggest we're not at risk of triggering a major reversal just yet. 

MBS are on the same sort of cruise control.  They started the day up just a bit from yesterday's POST-roll levels.  Keep in mind charts make it look like we're down in price because yesterday's portion of the chart is July coupons while today's is August.  August was always trading at lower prices, and the "roll" means we simply switch our point of view.

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
98-18 : +0-08
FNMA 3.5
102-17 : +0-08
FNMA 4.0
105-23 : +0-05
2 YR
0.4479 : -0.0121
10 YR
2.5124 : -0.0216
30 YR
3.3391 : -0.0259
Pricing as of 7/11/14 12:03PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:18AM  :  Slightly Stronger After Uneventful Overnight Session

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "but the politicans cant blame themselves, much easier to blame fnma"
Victor Burek  :  "it was the politicians that told fnma to loosen guidelines which caused the problem"
John Paul Mulchay  :  "What am I missing about the great desire to wind down the GSE's? FNMA worked just fine for 70 or so years and Dodd/frank appears to have hard coded adequate protections. Is it just a money grab for private industry again or is there more to consider besides the politics?"