Fannie 3.5s stayed inside a 4 tick (.125) range today despite a round of upbeat economic data at 10am and a clear trend toward higher yields in Treasuries.  This isn't an uncommon divergence when Treasury yields have bounced at recent lows, as they did on Thursday and Friday. 

Part of the reason is the general phenomenon of MBS simply moving less in either direction.  That's compounded in this case by Treasuries' role as a hedging vehicle for corporate bond issuance (large companies who plan to issue bonds frequently sell and buy Treasuries to protect against market movements while their deals are being finalized).

Whatever the combination of factors, the result is a 10yr yield that moved more than 3bps higher over the course of the day vs Fannie 3.5 prices that held relatively steady.  Both began the day in significantly weaker territory as financial markets lowered their guard from the 3-day weekend.

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
99-03 : -0-14
FNMA 3.5
102-22 : -0-08
FNMA 4.0
105-26 : -0-04
2 YR
0.5280 : +0.0360
10 YR
2.4190 : +0.0740
30 YR
3.1740 : +0.0890
Pricing as of 9/2/14 4:34PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:28PM  :  ALERT ISSUED: Negative Reprice Risk Debuts as MBS hit Lows
10:14AM  :  Moderately Weaker After Strong ISM Manufacturing and Construction Data
9:23AM  :  Bond Markets Much Weaker Overnight as Month-End Defenses are Lowered

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jeff Anderson  :  "51% for NOO."
Curt Sandfort  :  "Condo question because we never come across them, but what is generally the max percentage of tenant occupied that is allowed for FNMA?"
Oliver Orlicki  :  "date the deed transferred"
Justin Dudek  :  "I have a borrower with foreclosure on credit looking for VA financing. What date/event would be used to signify being 2 years out? "