Bond markets continue to put on a clinic in terms of avoiding anything meaningful or exciting.  3pm yields in 10yr Treasuries haven't varied by more than 2.7bps all week.  Additionally, they were almost perfectly in line with Mon-Wed of last week.  That just leaves Thursday (ECB) and Friday (NFP) of last week as offering a zig and zag of volatility against an otherwise almost perfectly-flat backdrop. 

A shift in the technical momentum for bonds suggested this morning's data could have elicited more of a reaction.  While it's true that we did, in fact get the positive momentum we were looking for, there wasn't much conviction behind it.  Rather than respond to the data, markets were just as keen to take cues from short-covering and corporate debt-related tradeflows.

For whatever positivity there was, MBS and Treasuries remained well-within their recent ranges.  In terms of 10yr yields, that's basically 2.40 to 2.30, but with a focus on 2.32-2.38 for most of the domestic trading hours.  With that in mind, heading out the door at 2.32 is one of the better alternatives.  MBS are similarly at their best levels of the week (Monday's prices were higher in the morning, but those were November coupons).


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
100-01 : +0-06
FNMA 3.5
103-13 : +0-04
FNMA 4.0
106-05 : +0-03
Treasuries
2 YR
0.5160 : -0.0030
10 YR
2.3200 : -0.0250
30 YR
3.0440 : -0.0290
Pricing as of 11/14/14 4:39PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:04AM  :  Bond Markets Take a Hit at First on Stronger Retail Sales, But There's Hope

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Barbara Healy  :  "http://mndne.ws/116wc93"
Barbara Healy  :  "Except CFPB didn't go after Franklin for any fines. They specifically said that due to the size of the company that they were not pursuing fines. The $730K is the restitution to the borrowers. AND they could have gone after the LOs personally, don't forget that."
Brian McFarlane  :  "I personally don't see how having different originators pick their margin is Reg Z compliant either"
Jason Anker  :  "CFPB says no. Recent comments re. fair lending violation etc. Also many atty's have said for 2+ years that it's also not ok. As we can see many violations out there, far from cleaned up"
Timothy Baron  :  "It should be pretty clear - if the bonus comes from overage on higher interest rates, it's a violation."
Andrew Benson  :  "How was the quality measured?"
Andrew Benson  :  "quality is an interesting one.. I would think you'd need to very clearly define it."
Jason Anker  :  "ah yes, the quality bonus"
Michael Ullmann  :  "agreed MH, but how many lenders out there bonus based on overage and how many bonus based on good will"
Matt Hodges  :  "bonuses aren't illegal...point banks are"