There are few situations that warrant more happiness or relief over what turned out to be a merely flat trading session in bond markets.  Reason being: it helps legitimize and confirm yesterday's more determined movement.  Looking at this in terms of 10yr yields, we'd been bouncing back from the 2.15 technical level rather timidly until yesterday and had been completely unable to break through the 2.04 technical barrier.  Yesterday not only did the trick, but 10yr yields gave 2.04 a nice courtesy tap on the way down, as if to confirm the technical significance.  There was strong follow-through with closing yields at 1.972.

Any time we see a technical break like that, it will always be more meaningful if we can get confirmation from the next trading day.  In that regard, today could have merely avoided being too much of a losing day and still easily confirmed the 2.04 break.  As it happened though, we didn't have to cope with much weakness at all.  Fannie 3.0s spent the whole day in a narrow 6 tick range with linear supportive bounces right in line with yesterday afternoon's supportive ledge at 101-25 in Fannie 3.0s.  10yr yields treated 2.0 as today's ceiling and ended at 1.972 for the second straight day.


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
101-29 : +0-02
FNMA 3.5
104-24 : +0-00
FNMA 4.0
106-26 : -0-01
Treasuries
2 YR
0.6060 : +0.0530
10 YR
1.9720 : +0.0000
30 YR
2.5720 : -0.0120
Pricing as of 2/25/15 5:43PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:16PM  :  ALERT ISSUED: Negative Reprice Risk Considerations For a Lender or Two
10:31AM  :  Bond Markets Holding Yesterday's Gains as Yellen Begins Testimony

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "It's not that there are necessarily a lot more 3.0s being issued. It's just a matter of what's the lowest coupon that's seeing a solid amount of origination (because that will be the most sensitive to market movements, and thus, the earliest indicator of reprice risk)."
Matthew Graham  :  "yes"
Alan Craft  :  "Still pretty close though isn't it?"
Matthew Graham  :  "with yesterday and today's moves, back to 3.0"
John Klarin  :  "which coupon is more prevalent now? 3.0 or 3.5%"
Ira Selwin  :  "Be thankful it was only .25 or .375. IN December of Jan they dinged it almost a point in a day"
Sung Kim  :  "you cannot look at MBS/TSY and just deduce what Non-conforming will do"
Sung Kim  :  "because Chase is already way better than everyone else"
Caroline Roy  :  "what's up with that? market doesn't seem to justify that change"
Caroline Roy  :  "are you guys seeing pricing pretty far off today? chase jumbo seems off about .375 in price this morning"
Matthew Graham  :  "right down the middle"
Matthew Graham  :  "RTRS - U.S. 5-YEAR NOTES BID-TO-COVER RATIO 2.54, NON-COMP BIDS $60.35 MLN"
Matthew Graham  :  "RTRS - U.S. SELLS $35 BLN 5-YEAR NOTES AT HIGH YIELD 1.480 PCT, AWARDS 64.14 PCT OF BIDS AT HIGH"
Jason York  :  "use whatever is entered in FHA connection, which will likely be the purchase price"
Kenneth Crute  :  "doing a Streamline, original p/p was $255k original appraised value $310k when determining the new monthly MI for the streamline do I use pp or appraisal?"