Depending on where you want to draw the line between the overnight and domestic sessions, nothing really happened today.  Bond markets were basically done doing much of anything by 9:15am, and even that early morning movement was primarily driven by late-day trading in Europe. 

It was as if yesterday's FOMC Announcement was the last major event that market participants were waiting around for and the overnight session simply gave Asia and Europe a chance to respond.  That's the most conventional way to view today's movement, anyway.

The counterculture frame of reference (and my personal favorite) is that European markets were already turning by Tuesday, but logically would be waiting to see what the FOMC Announcement had to say, if anything.  It ended up saying nothing, and thus got out of the way for the Eurozone-led trading to continue pushing the global "risk-on" rally in the same direction.  This jives quite well with domestic bond markets being done moving by morning (to quantify that, 10yr yields didn't move more than 1.5bps in either direction from 9:15am.  That's nothing).


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
100-26 : -0-09
FNMA 3.5
103-32 : -0-05
FNMA 4.0
106-15 : -0-01
Treasuries
2 YR
0.6370 : +0.0200
10 YR
2.2090 : +0.0730
30 YR
2.8200 : +0.0900
Pricing as of 12/18/14 4:08PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:24AM  :  Bond Markets Extend Losses; This isn't Really About the Fed

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
John Sheadel  :  "Much like my liver function..."
Matthew Graham  :  "they typically go to 20-40% of mid Dec average"
John Sheadel  :  "I'd be interested to see the specific volume levels over the rest of the year. "
Andrew Haynes  :  "i'll take it...pipeline looking good to start q12015. :)"
John Sheadel  :  "sorta like an extended thanksgiving week"
Matthew Graham  :  "I guess the only real takeaway is that this is the point at which I'd hesitate to read much more into the rest of the year's movement."
John Sheadel  :  "ah... I can get on board with your statement"
Matthew Graham  :  "No more significant data or events. Holiday absences starting now. Trading levels flat-lining. EU bond markets wanting us to believe they've made their last bounce of the year. "
Matthew Graham  :  "looks like 2014 is over"
Matthew Graham  :  "yep, that, and shorter duration than 10's, which is an advantage today."
John Sheadel  :  "less gain, less loss"
Andrew Haynes  :  "wow, looks like mortgages outperforming again.."