It was an intensely soporific trading session today.  Bonds started out in positive territory and then began a slow, steady grind back toward unchanged levels.  On the week, the trend was moderately weaker and completely lacking in conviction.  Trading direction was serendipitous in the short term, but mechanical and technical in the slightly bigger picture. 

In other words, there were no overt motivations for rates to be moving, but once they began moving, it was the technical boundaries of the trend that suggested the bounces.  The only exceptions to this phenomenon were the 3 and 30yr Treasury auctions.  Had it not been for those two events, the week may well have been completely flat.

As for today itself, there was Import/Export data in the morning, but no market reaction.  The 8:20am CME open brought the only early momentum--a clear sign that markets are tuned out from fundamentals and that tradeflows are in control.  More simply put, prices/yields were being driven by trading needs/goals without regard for underlying economic fundamentals or headline developments.  A simple example would be a trader that went long (bet on rates falling) after yesterday's auction seeing that rates crossed over the pre-auction levels and consequently sold to book a profit.  Indeed this example is just the sort of thing that contributed to this morning's bounce at the low yields of the day.

MBS, for their part, had a sideways week due mainly to the monthly coupon cycle.  All things being equal, MBS get about 10/32nds of outperformance every month and then give it all back to break even on roll day.  With the roll coming up next week, it's no surprise to see MBS holding steadier in the fact of modest Treasury weakness.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
102-12 : +0-03
FNMA 3.5
105-04 : +0-03
FNMA 4.0
106-26 : -0-01
2 YR
0.5600 : +0.0080
10 YR
1.9510 : -0.0121
30 YR
2.5850 : -0.0130
Pricing as of 4/10/15 4:35PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:47AM  :  ALERT ISSUED: Negative Reprice Risk Despite Positive Territory
10:21AM  :  Tradeflows Setting the Tone Again; Ebbs and Flows

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Hugh W. Page  :  "Coinsurance is not that simple to understand but it's basically the insurance company imposes a cost sharing penalty on the Condo HOA for not obtaining coverage equal to 100% of the replacement cost of the building."
Scott Valins  :  "SA you mean the master provides the H06? What is coinsurance?"
Stewart Anderson  :  "Does anyone know where I can find Freddie's condo insurance requirements? I have a condo that has a master policy with coinsurance. I've told this is something only Freddie will consider. Any thoughts? Help appreciated."