In yesterday's recap, we discussed the phenomenon whereby most of the market movement has been happening overnight during these Euro-centric times, with the US trading hours seeing comparatively less volatility.  Same old story today, but more impressive!

Bond markets managed to shrug off THREE stronger-than-expected economic reports, including a revision to GDP that took Q2 up to 4.2%.  Yet not only did that data never materialize into selling pressure, but neither did the rest of the data or stock market gains.

Fannie 3.5s traded a fairly narrow range and never dipped into negative territory.  They're heading out an eighth of a point higher.  The scariest dip happened heading into 2pm, but bonds bounced back.  There was brief, modest reprice risk at the lows today.

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
99-17 : +0-05
FNMA 3.5
102-29 : +0-03
FNMA 4.0
105-29 : +0-03
2 YR
0.5040 : -0.0120
10 YR
2.3380 : -0.0230
30 YR
3.0750 : -0.0340
Pricing as of 8/28/14 4:44PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:36PM  :  Negative Reprice Risk Rapidly Evaporating as Bonds Bounce Back
1:38PM  :  ALERT ISSUED: MBS at Weakest Levels; Negative Reprice Risk on Horizon
9:30AM  :  Dumpster Diving for Excuses to Rally; Paradoxically Stronger Following GDP

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Christopher Stevens  :  "I am not sure who asked about USDA and pool issue the other day but I spoke with USDA and in fact the value of the in-ground pool will no longer have to be deducted from the PP with the new guides in December"
Nathan Stotlar  :  "Wait. Fannie Mae is going to sell and go into leased space? Is that sending the right signal to homebuyers??"
dustin mcalister  :  "ah, good, i can take my finger off the lock button"
Matthew Graham  :  "the auction itself isn't a market mover because no one cares about 7's. However, it is the end of this week's buying needs and also coincides with European bond market close, so those two factors could result in movement, but more gradually. Never (usually) a big 'pop' at 1:01:30 following 7's."
Victor Burek  :  "we might just cause supply is done"
dustin mcalister  :  "so we won't see any movement from them?"
Ted Rood  :  "that's better than a C, right? ( Been a long time since I was in school)"
Matthew Graham  :  "B+"
Matthew Graham  :  "RTRS- U.S. 7-YEAR NOTES BID-TO-COVER RATIO 2.57, NON-COMP BIDS $26.38 MLN"