European and US headlines did their rendition of 'dueling banjos' this afternoon.  On the European side, we had potentially fake news out of a country that may only exist in the movies and history books.  The Prime Minister of Malta is cited as saying Greece could cancel the referendum if they can make a deal with creditors.  Why we're hearing this from the Maltese PM is anyone's guess.

On the US side, Fed Vice Chair Fischer (the respected one, not the crazy ex-Dallas Fed pres. who says "feral hogs" and "monetary cocaine") said that we're basically at full employment and that we have to hike sooner vs later because of a lag in impact of monetary policy.  He went on to say the Fed would try to let us know when that's coming in order to minimize international market volatility. 

In other words, the September hike is a go, unless something changes in a major way.  Every NFP that's near or better than forecast will only solidify that.  This isn't too far from the current market sentiment, so there wasn't much of a reaction at first.

Helping quell the reaction was Europe's next banjo riff.  Shortly after the Fischer comments, European officials--fresh out of the recently adjourned Eurogroup meeting--began an assault on all forms of electronic media in an effort to let the world know that there was no new deal reached with Greece today.  The only one that really mattered was an official comment from the head of the Eurogroup saying that the Greek government will send a new proposal to the Eurogroup tomorrow.

Bonds turned more markedly negative heading into (and out of) the 3pm Treasury close.  Because today is month/quarter-end, there's a bigger-than-normal contingent of trades that had to take place by 3pm, as well as a great many trades that were finally free to be made after the month of June was unofficially over for some traders.  Prices leaked back into negative territory heading into 4pm, and several lenders repriced negatively.

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
99-12 : -0-03
FNMA 3.5
102-27 : -0-02
FNMA 4.0
105-26 : +0-00
2 YR
0.6490 : +0.0120
10 YR
2.3570 : +0.0290
30 YR
3.1290 : +0.0280
Pricing as of 6/30/15 4:10PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:09PM  :  ALERT ISSUED: Negative Reprice Risk Rapidly Increasing after month-end Close
1:54PM  :  Markets Bounce after Europe Closes; Isolated Reprice Risk Considerations
9:59AM  :  Bond Markets Mostly Holding Yesterday's Gains

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matt Hodges  :  "mr. client: we have ADP, NFP, Greece and junior traders. Oh yeah, and tomorrow a buncha lenders will institute higher LLPAs. Wanna lock or float?"
Matthew Graham  :  "many clients lean on your gut though, so if it's important for you to have something to say in that regard, that's understandable"
Matt Hodges  :  "more importantly, what do our clients want to do... not what our gut says"
Matt Hodges  :  "think about what could happen this week - ADP, NFP, Greece, short week - lots of stresses on the market"
JEREMEY BECK  :  "locking em up today!!"
Timothy Baron  :  "Positive reprices earlier, weakness now. Lock 'em up!"
Mike Drews  :  "floating is so 2014"
Matthew Graham  :  "2015 has been a good year for that"
Nathan Miller  :  "been locking at app all year, been working out fine"
Christopher Stevens  :  "CRAZY not to lock imo"
Raul Lopez  :  "So, whos foating abd whos locking??"
Matt Hodges  :  "ADP 8:15 tomorrow. i wouldn't count on cracking 2.31/2.30 today"
Christopher Stevens  :  "not happy that we still can't seem to break below 2.31 for the 2nd day"
Jason York  :  "90 I think"
Dustin McAlister  :  "is va rule 60 or 90 days for termite inspection from date of note"