Everything that happened in bond markets today, happened before noon.  Whether this was a factor of European markets contributing to the volatility or simply another afternoon during August isn't readily apparent, but both likely contributed. 

Treasuries were slightly stronger in the overnight session.  10's and MBS were both back to yesterday's best levels at the open.  The morning data only proved to be a minor speedbump in the grand scheme of things (stronger Housing Starts caused temporary weakness).

It wasn't until stocks were open for the day and headlines hit alluding to potential Ukraine/Russia deescalation that the weakness flared in earnest.  It was fueled on several occasions by large block trades in Treasury futures.  These happen every day, but when trading activity is as light as it was today, they have a bigger effect.

At the end of the day, we're left with charts that look much more dramatic than the actual price levels.  Fannie 3.5s are only down 2 ticks as we approach the close and 10yr yields are up 1.5bps to 2.402.

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
98-26 : -0-03
FNMA 3.5
102-16 : -0-02
FNMA 4.0
105-20 : -0-01
2 YR
0.4310 : +0.0120
10 YR
2.4020 : +0.0150
30 YR
3.2130 : +0.0170
Pricing as of 8/19/14 4:14PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:33AM  :  ALERT ISSUED: Weak Fed Buyback and More Big Trades Adding up to More Reprice Risk
10:59AM  :  ALERT ISSUED: Negative Reprices Move from Possible to Probable
10:32AM  :  Behind the Recent Weakness: Ukraine Headline and a Block Trade
10:03AM  :  ALERT ISSUED: Negative Reprice Risk Already Increasing
8:53AM  :  Bond Markets Shed Gains, Then Bounce Back Following Stronger Housing Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jason Anker  :  "I'm with CS, follow the purchased in recent tax year guide until he is req. to file"
Clayton Sandy  :  "should be able to use the lease."
Frank Hanna  :  "fnma scenario: client bought a rental property in 2013. he rented part of the year, and all of 2014 thus far, and has a lease in place. He has filed an extension on taxes for 2013. Any way to use the lease for income?"