Driven almost exclusively by European bond market strength (and stock market weakness), Treasuries and MBS began the day in much better territory.  Overnight considerations included weaker economic data in Germany, Italy, and the UK.  German Bunds--the benchmark for European bond markets--fell to new all-time lows and have flat-lined there.

Treasury yields followed during the overnight session, but began moving higher into domestic trading hours.  MBS have similarly been moving lower since the open.  While Fannie 3.5s are still in positive territory on the day, they've fallen enough from some lenders' rate sheet print times that negative reprices are already a consideration (and one has already been reported on MBS Live).

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
98-17 : +0-02
FNMA 3.5
102-11 : +0-01
FNMA 4.0
105-17 : +0-01
2 YR
0.4640 : -0.0040
10 YR
2.4690 : -0.0140
30 YR
3.2680 : -0.0100
Pricing as of 8/6/14 12:01PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:03AM  :  ALERT ISSUED: Negative Reprice Risk Increasing Slightly as MBS Push Lows
9:54AM  :  Bond Markets Pull Back as Stocks Rally Sharply at the Open
9:25AM  :  European Bonds Surge, Pulling US Yields Lower Overnight; Holding Ground Now

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ted Rood  :  "Think I read somewhere in The Day Ahead that US yields could improve if Bund yield breaks lower."
Victor Burek  :  "german bund at 1.10"
Scott Valins  :  "all thanks to Europe"
Oliver Orlicki  :  "Gotta love waking up to 2.44"