When you see the word "consolidation" in market analysis--especially with respect to movement in securities prices/yields--it might as well read "correction."  Simply put, a consolidation is the diffusion of the volatility.  Rates spike higher or lower.  Market participation picks up significantly.  Then the crowd disperses.

That almost always involves an initial, instinctive move back in the direction from whence the original move came, and as we discussed this morning, past examples show the process can last 5 days before markets are free to go about their business.  Bottom line, today was flat and tomorrow shouldn't be.

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
100-21 : +0-02
FNMA 3.5
103-24 : +0-01
FNMA 4.0
106-09 : +0-00
2 YR
0.3620 : -0.0045
10 YR
2.2200 : -0.0070
30 YR
2.9940 : -0.0060
Pricing as of 10/22/14 4:46PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:31AM  :  Bond Markets Losing Ground After Strong Overnight Session

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Hugh W. Page  :  "Never had to get a Cash Flow Analysis. Just the CPA letter"
Matthew Carver  :  "depends on the amount of business assets being used compared to the size of the company "
Matthew Carver  :  " yes, all the time"
Raul Lopez  :  "Has any one here been asked by UW to provide a CPA Business Cash Flow Analysis and LOX stating the use of business funds will not have a negative impact on the business?"
Thomas Nelson  :  "B.C.......you are correct, but I think he meant 401k. Asking for terms of withdrawal on a vested balance of a 401k is unnecessary. The term "401k" has it's own rules. You can withdrawal with a penalty."
B C  :  "some retirement accounts are not eligible for loans or early withdrawal, so that makes them not liquid reserves and are useless. if the UW is nto asking, I think they are wrong"
Sung Kim  :  "jumbo yes, conventional and govvy, no"
Stewart Anderson  :  "Is everyone see their U/W's asking for 'Terms and Conditions of Withdrawal' on retirement accounts when the funds are only being used to satisfy reserve requirements?"