In more ways than one, today has been 'modest' for bond markets.  The overnight session was slower than normal, even for a Monday due to a bank holiday in the UK (US Treasury trading during the European session depends on London being open). 

When Treasuries finally began trading in earnest for the day, it was at lower yields.  Futures had been online before that, however, and had followed German Bunds to stronger levels.  The domestic session got underway with MBS 4 ticks higher (Fannie 3.5s) and 10yr yields nearly 2bps lower. 

Trading has been mostly sideways and uneventful since then.  Bonds weren't able to make any new price highs as European bond markets and equities markets had been pulling in the other direction.  This posed the biggest risk following the 10am New Home Sales Data. 

Although sales were weaker than expected, stocks kept rallying and European bond markets kept weakening.  MBS were almost to the point of negative reprice risk when all of the above bounced and leveled-off, allowing bonds to stay green on the day.

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
99-02 : +0-05
FNMA 3.5
102-22 : +0-03
FNMA 4.0
105-26 : +0-02
2 YR
0.5040 : +0.0120
10 YR
2.3910 : -0.0120
30 YR
3.1390 : -0.0180
Pricing as of 8/25/14 12:22PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:27AM  :  MBS hit Lows Despite Weaker Home Sales Data; Trying to Bounce
9:18AM  :  Bond Markets Boosted by Europe Overnight; Sliding Into Domestic Hours

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "S&P about to hit 2000"
Victor Burek  :  "yet builders optimism is growing"
Matthew Graham  :  " RTRS - US JULY SINGLE-FAMILY HOME SALES 412,000 UNIT ANN. RATE (CONS. 430,000) VS JUNE 422,000 UNIT RATE (PREV 406,000)"
Matt Hodges  :  "well written Day/Week Ahead - puts economic reporting in perspective"