Little has changed from the mid-day summary.  In it, we discussed the fact that today's economic data and corporate bond issuance constituted headwinds for Treasuries and MBS.  At the time, bonds were holding their ground rather well despite those headwinds, and that generally continued to be the case into the afternoon.  While the "ebbing gains" noted in the mid-day continued to ebb, the pace was so slight that we stayed in positive territory through the close.

To reiterate the previous conclusion, that's a promising development considering the headwinds.  Not only did we stay green in spite of stronger Home Sales data, but we also weathered another big day of corporate debt issuance.  As a reminder, corporate issuance just means more bonds hitting the bond market.  They're not necessarily apples to apples with Treasuries and MBS, but some investors are certainly lured away, thus hurting MBS prices a bit.  As a more arcane reminder, Treasuries can be involved in the hedging process for corporate bonds, which means they're sold earlier in the process although they are often bought back later in the process. 

Using 10yr yields as a benchmark, we had a nice technical bounce at 2.342 as a ceiling today.  That had been the floor for the past 5 sessions.  Now we watch and hope it holds as a ceiling again tomorrow.  Breaking below today's lows of 2.302 would be an even stronger showing.

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
99-26 : +0-01
FNMA 3.5
103-06 : +0-01
FNMA 4.0
106-01 : +0-02
2 YR
0.7100 : +0.0280
10 YR
2.3270 : -0.0040
30 YR
3.0450 : -0.0220
Pricing as of 7/22/15 5:23PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:32AM  :  Holding Modest Gains Despite Stronger Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jason Anker  :  "the guide doesnt specify you can pay the borrower back for that stuff"
Caroline Roy  :  "we already closed it. They owned the lot and the house for a year. THey did a construction loan purchase and did a massive overhaul on the house. We had the payoff and $127k in invoices paid by the borrower, but they only got reimbursed for $75k at closing"
aaron meyer  :  "CR how long did they own the lot before the build?"
Jason Anker  :  "CR - B2-1.2-02, Limited Cash-Out Refinance Transactions (06/30/2015)"
Caroline Roy  :  "can someone find in FNMA guides were it actually says that a borrower's out of pocket construction costs can be paid out in a r/t construction to permanent loan? i can't find it exactly and chase is giving us grief over it and trying to make us sell it as a cash out."