During the 3.5-day Thanksgiving week, we expect to see a lack of participation in bond markets juxtaposed with condensed data and volatility.  Data and participation were certainly limited today and accordingly, there wasn't much movement.  The small amount seen was clearly connected to headlines and events.  It also reacted more than it normally would in a few cases.

The first move of the overnight session was logical enough.  One of the most widely-followed pieces of economic data in Germany was stronger than expected and bond markets consequently lost some ground.  As the domestic session took over, a weaker Markit PMI report (typically not a market mover) may have actually gotten the ball rolling on a bounce back from overnight weakness.  Shortly thereafter, comments from Germany's Central  Bank president further fueled global growth concerns as he threw a bit of cold water on the prospects for the European Central Bank purchasing sovereign debt. 

From there, the only remaining market mover of the day was the incredibly strong 2-yr Treasury Note auction.  It's hard to say exactly how overblown the reaction was here.  On the one hand, any discernible reaction to 2yr Treasuries could be considered "more" than we've seen in years.  On the other hand, this was one of the strongest 2yr auctions we've seen in years, and it also may hearken a bit of unforeseen demand for Treasuries heading into month-end.  After beginning the day in negative territory, both MBS and Treasuries turned positive following the auction.


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
100-12 : +0-03
FNMA 3.5
103-24 : +0-03
FNMA 4.0
106-18 : +0-03
Treasuries
2 YR
0.4970 : -0.0081
10 YR
2.3050 : -0.0067
30 YR
3.0170 : -0.0021
Pricing as of 11/24/14 5:14PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:25PM  :  Bond Markets Break Into The Green After 2yr Auction
9:29AM  :  Bond Markets Slightly Weaker After Stronger German Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Andy Pada, Jr.  :  "those are 40+ county increases"
Andy Pada, Jr.  :  "http://mndne.ws/1xUF28t"
Andy Pada, Jr.  :  "new loan limits out"
Matthew Graham  :  "A"
Matthew Graham  :  "RTRS- HIGH YIELD AT LATEST 2-YEAR NOTE SALE WAS 1 BASIS POINT BELOW ITS 1 P.M. WHEN-ISSUED LEVEL - REUTERS DATA"
Matthew Graham  :  "highest bid-to-cover since December 2013"
Matthew Graham  :  "RTRS- U.S. 2-YEAR NOTES BID-TO-COVER RATIO 3.71, NON-COMP BIDS $147.04 MLN"
Matthew Graham  :  "RTRS- U.S. SELLS $28 BLN 2-YEAR NOTES AT HIGH YIELD 0.542 PCT, AWARDS 0.26 PCT OF BIDS AT HIGH"
Andy Pada, Jr.  :  "that could be so many things"
Andy Pada, Jr.  :  "i would just call Freddie"
Ted Rood  :  "SO, if I get the LP message "Refi-relief open access mortgages must match active FM loan", and Freddie harp lookup said Freddie has loan, assume NOT eligible for HARP despite Freddie holding loan? "
Matthew Graham  :  "Getting close to 3.0 though. Another .125-.25% drop in rates would make 3.0s worth keeping an eye on. .375% would make them dominant."
Victor Burek  :  "3.5"
Robin Baran  :  "should we be watching fnma 3.0 or 3.5?"