S&P futures were well-connected with overnight Treasury trading as global weakness set the tone early.  Chinese stocks are back in the news with another massive drop to kick off the week's trading.  The Chinese government announced more stock buying late this morning, but it's had little effect on the general malaise in broader markets.

Treasury yields were in better shape even before this morning's Durable Goods release, but improved afterward.  That's a bit counter-intuitive considering the report came out stronger than expected (3.4 vs 3.0).  Possible explanations for the paradox include the fact that several internal components were weaker or that traders were simply  wanting to see a better bounce back from recent weakness.

Explaining the reaction to Durable Goods is neither here nor there at the moment considering Treasuries and MBS are both back to 8:30am levels.  We'd want to see this 2.24% ceiling hold in 10yr yields in order to keep negative momentum in check.  The analogous level in Fannie 3.5s is 103-13.  Breaking below would introduce negative reprice risk for some lenders.


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
100-06 : +0-07
FNMA 3.5
103-14 : +0-05
FNMA 4.0
106-05 : +0-04
Treasuries
2 YR
0.6580 : -0.0240
10 YR
2.2350 : -0.0274
30 YR
2.9470 : -0.0132
Pricing as of 7/27/15 12:09PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:16AM  :  Bonds Add to Overnight Gains on Data Subtext

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jeff Anderson  :  "I'm thinking traders were waiting to make sure it wasn't a big beat as they knew that they wanted to buy today"
Jason Anker  :  "so DG beats and we're green. Must be opposite day"
Dan Clifton  :  "we have a nice 2 week trend going since july 13, steady comfortable. hoping we continue "
Matthew Graham  :  "RTRS- US JUNE NONDEFENSE CAP ORDERS EX-AIRCRAFT +0.9 PCT, (CONS +0.4 PCT) VS MAY -0.4 PCT (PREV -0.4 PCT)"
Matthew Graham  :  "RTRS US JUNE DURABLES ORDERS +3.4 PCT (CONSENSUS +3.0 PCT) VS MAY -2.1 PCT (PREV -2.2 PCT)"