Most days with modest gains in MBS would see similarly modest improvements in rate sheets.  While there were a handful of positive reprices in the afternoon, they were working against very conservative morning pricing, leaving rates slightly higher day-over-day. 

In that light, the mild weakness in rate sheets it reflected fairly well by the mild weakness in Treasuries.  10yr yields caught their footing after European equities markets closed and drifted sideways just under 2.20.  This is right in line with Tuesday afternoon's levels which seemed pretty stellar at the time, but are a bit anticlimactic after a foray into the 1's on Wednesday.

As noted in the morning commentary, we usually have to wait a few more days before seeing which direction bond markets will head after this sort of disruptive movement.  While it might feel like a step in the wrong direction to have lost ground from Wednesday, it's worth something that we're ending the week in much stronger territory than we ended last week.  It's also the 5th consecutive week where 10yr yields have closed at lower yields than the previous week--something we haven't seen since January 2014.   Even if we were to weaken further from here, we're not even remotely close to challenging the existing long-term positive trend in rates.  Still in the game...


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
100-21 : +0-01
FNMA 3.5
103-23 : +0-02
FNMA 4.0
106-10 : +0-03
Treasuries
2 YR
0.3750 : +0.0357
10 YR
2.1990 : +0.0475
30 YR
2.9720 : +0.0370
Pricing as of 10/17/14 5:33PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:25PM  :  Reprice Risk Eases and Perhaps Even Reverses. Here's Why
11:14AM  :  ALERT ISSUED: Flirting with Reprices for the Worse
10:03AM  :  Treasuries Weaker After Data; MBS Closer to Unchanged

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Mike Ford  :  "MG, thank you so much for that detailed response! As a Financial Advisor, I am appreciative of the deeper dive insight gained from you and this site!"
Andy Pada, Jr.  :  "i bet this is all about fannie/freddie collateral valuation model that will relieve lenders from repurchase on that aspect."
Matthew Graham  :  ""Mortgage giants Fannie Mae and Freddie Mac, their regulator and lenders are close to an agreement that could greatly expand mortgage credit while helping lenders protect themselves from charges of making bad loans, according to people familiar with the matter. Fannie Mae and Freddie Mac have recouped tens of billions of dollars in penalties from lenders in recent years over claims that the lenders made underwriting mistakes on loans they sold to the mortgage giants. Lenders have blamed those penalties for tight credit conditions and for prompting them to make loans only to borrowers with near-pristine credit. If the agreement is completed, lenders may be more willing to lend to borrowers with lower credit scores and smaller down payments.""
Hugh W. Page  :  "Teasing us with a lack of details but this could be quite good for us."
Hugh W. Page  :  "This just popped up on WSJ: "Fannie, Freddie Close to Agreement That Could Reduce Lender Penalties" Did I miss something in the newsstream about the details?"
Jason Anker  :  "Thanks to Mark DeWitt for correcting me on the new FNMA BK/FC guide, locked a 400k R&T refi today because of it. "