Next week promises to be big.  Even if the events don't 'agree' with each other enough to spark a major rally or sell-off, the potential is there.  Due to last week's geopolitical headlines, bond markets arguably made it down to the lower end of the rate range a bit early to set up their chairs for next week's parade of data.  That created a risk that they'd wander around a bit in the meantime and possibly even find new seats.

In other words, yesterday's weakness ran the risk of starting a small correction ahead of what everyone knows will be a big week in terms of data and events.  This was probably a viable possibility heading into today, but bonds got help from several friends.  These include a rally in European debt on weak data abroad, weakness in domestic equities markets, and internal components of today's Durable Goods data that suggest another downward revision for next week's GDP reading.

Finally, as that 'help' kept showing up, traders that had been betting on a move higher in rates were forced to cover those 'short' bets by buying bonds.  This in turn pushes rates that much lower and forces the next wave of short-covering.  It's a virtuous cycle as far as mortgage originators are concerned.  MBS soaked up a fair amount of the positivity and are currently heading out roughly a quarter point in better territory.

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
98-19 : +0-10
FNMA 3.5
102-12 : +0-08
FNMA 4.0
105-17 : +0-06
2 YR
0.4918 : +-0.0002
10 YR
2.4691 : -0.0399
30 YR
3.2417 : -0.0573
Pricing as of 7/25/14 3:51PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:36PM  :  Slumping Stocks, Weak EU Close Boost Bonds; Positive Reprice Potential
9:09AM  :  Bond Markets back into Positive Territory After Durable Goods Paradox

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "i would need to see a reprice better before i would consider locking today"
Thomas Counsell  :  "NYCB Mortgage is an excellent lending partner as well. Their Gemstone system basically has DU built right in so no additional charge plus extremely smooth with uploads, clearing conditions, etc. Always someone to talk at their MCC as well."
Clayton Sandy  :  "I second what Dirk said. Stearns gives you that if you don't have them already. "
DIRK POSTUPACK  :  "Stearns"
Kirk Kelley  :  "hey brokers, I am looking at adding a lender, I need somebody who is not crazy with the conditions, has good procedures, efficient, ect...good turn times, good rates, Suggestions? "