It's common to see a pre-NFP consolidation in bond markets.  This refers mainly to the Monday and Tuesday of NFP week, especially if the Monday is NOT the first trading day of the new month.  For this week, that leaves today as the only real "pre-NFP" day.  Incidentally, the clock starts tick on Wednesday due to the data that is typically released: ADP and ISM Non-Manufacturing.  These are two of the biggest market movers apart from NFP, and they frequently account for a pre-NFP "lead off."

Today's consolidation has been fairly tame so far, and arguably began yesterday afternoon after the bond rally had run its course by 12:30pm.  As we noted in the morning update on MBS Live, that bounce coincided with a sell-off in Oil running its course.  And that just happens to be one of the more correlated markets, but the underlying theme is that a broad momentum was moving 'away from risk,' and that momentum leveled-off yesterday afternoon. 

So far today, it hasn't done much to push back in the other direction.  Just as it can be argued that Treasuries hit a technical barrier around 2.14-2.15 yesterday, it could also be asserted that we're seeing good support so far this morning at 2.18-2.19 overhead.  Considering these were the "floor" levels in late July, there's a case to be made for technical support here.  As always, keep in mind that 'technical support' isn't a prediction about the future, but rather, a way to separate significant movement from randomness.  In other words, a break above 2.19--while only a 1-2bps move higher at this point, would be more significant than the move up from 2.14 to 2.17 seen so far today.

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 : -0-04
FNMA 3.5
103-26 : -0-03
FNMA 4.0
106-12 : -0-02
2 YR
0.6840 : +0.0190
10 YR
2.1820 : +0.0320
30 YR
2.8770 : +0.0230
Pricing as of 8/4/15 11:41AMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:02AM  :  Bond Markets Modestly Weaker After Global Markets Stabilize

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "definitely not going to raise anyone's pulse "
Matthew Graham  :  "RTRS - U.S. JUNE FACTORY ORDERS +1.8 PCT (CONSENSUS +1.8 PCT) VS MAY -1.1 PCT (PREV -1.0 PCT)"
Hugh W. Page  :  "The bigger deal is how all our respective companies handle the change and how well real estate professionals understand it when structuring contracts and closing dates. The changes themselves in many cases are good IMO."
Jon Bodan  :  "thanks guys! JM, that's my take as well. I think it's going to be way less of a big deal than people think."
Hugh W. Page  :  "MGIC has some decent stuff out there on TRID"
John Murphy  :  "@JB APR >.125, loan program change , imposition of PP, all will trigger new CD and wait period? most changes willnot require new CD IMO"
Jon Bodan  :  "Does anyone have some kind of reference from an investor on TRID related to what can and cannot change after the CD is issued? There are some hairs that can be split, I just need to clarify what."
Matthew Graham  :  "can't draw too much--if any--short term correlation between the two. In fact, I'd say it's dangerous to do so with NFP and any of the other 12 or so historically correlated indicators. Like many things that are correlated in markets over time, they look great over the long run, but can vary greatly month-to-month. "
Michael Baker  :  "MG: Has any of the data in the weekly jobless claims indicated a possibility of a deteriorating NFP number? "