It was a tale of two headlines today; one of the scheduled; the other, a surprise.  The schedule economic data at 10am showed ISM's Non-Manufacturing Index higher than expected at the best levels since 2005.  While this is something that would have happened on any moderately-sized improvement, it didn't help bond markets.  In addition, Factory Orders data was also stronger than expected.  And all of the above followed a moderately weaker overnight session.

But bond markets remain keyed in to stock market movements, both at home and abroad.  When the S&P and European markets reversed course just after 10:30am, bonds had their cue to calm down and do the same.  During the process, headlines crossed the wires regarding a potential Russian invasion of Ukraine. 

For some reason, markets decided this mattered today, but it was little more than speculation from Poland's Foreign Minister Sikorski based on increased troop presence at the Ukrainian border.  To be sure, an invasion is and has been an ongoing possibility!  But it's hard to see why it is or should be any more of a possibility based on Sikorski's comments.

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
98-14 : -0-01
FNMA 3.5
102-09 : -0-02
FNMA 4.0
105-16 : -0-02
2 YR
0.4640 : -0.0080
10 YR
2.4870 : -0.0040
30 YR
3.2860 : -0.0090
Pricing as of 8/5/14 4:22PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:09PM  :  Sideways to Slightly Weaker as Headline Impact Fades
2:22PM  :  Bond Markets Break Into Positive Territory on Russia Invasion Headlines
12:52PM  :  Bond Markets Bounce Back
10:22AM  :  ALERT ISSUED: Post-Data Weakness Continues; Now Entering Reprice Risk Territory
10:12AM  :  Bond Markets hit Weakest Levels After Stronger Data
9:05AM  :  Bond Markets Slightly Weaker Overnight and Into US Session

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "Poland saying Russia to invade Ukraine"
robert clark  :  "Comments from Poland about Russia"
Jeff Anderson  :  "What was the stock dive at 1:45 from? Putin comments?"
Bryce Schetselaar  :  ""
Bryce Schetselaar  :  "yes. It is per ML 2013-04"
Jason York  :  "is FHA MI for jumbo 1.55%?"