Much has been made recently of the surprising lack of response on the part of bond markets to the massive sell-off in stocks.  That shoe is now on the other foot as bond markets remain little-changed despite the S&P being up 37 points. 

While the day is still fairly young, this is a resilient showing for bond markets so far--especially in light of the stronger-than-expected GDP (+3.7 vs +3.2 forecast).  There was definitely a reaction to the data at first, with bonds moving to the weakest levels of the day.  But 10yr yields are trying to establish a supportive ceiling around 2.20.  As long as yields don't go too much above that, today will end up marking the end of the nasty little correction back from Monday's lows.

If the aforementioned ceiling ends up holding today, we shouldn't be surprised if it doesn't look like that before 1pm.  That's when the week's last Treasury auction takes place, and simply being done with "supply" for the week could be a net benefit for bond markets. 


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
100-18 : -0-03
FNMA 3.5
103-23 : -0-02
FNMA 4.0
106-08 : -0-02
Treasuries
2 YR
0.7030 : +0.0230
10 YR
2.1950 : +0.0150
30 YR
2.9280 : -0.0070
Pricing as of 8/27/15 11:29AMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:12AM  :  Bond Markets Trying to Hold Support After Stronger GDP

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "they are looking for the unicorn rate hike"
Victor Burek  :  "funny, seems they want to act, but they don't want the market to react to their action"
Hugh W. Page  :  "If they're looking for market stability as one criteria before acting they may never act....."
Matthew Graham  :  "It's interesting... the extent to which the Fed has quietly adopted this 3rd, unwritten mandate about market stability "
Matthew Graham  :  "RTRS- GEORGE SAYS TIMING OF FED POLICY DECISION MUST TAKE INTO ACCOUNT POTENTIAL FOR MARKET VOLATILITY"
Jon Leslie  :  "sounds like they are trying control stock market MG last couple days? "
Matthew Graham  :  "RTRS- U.S. JULY PENDING HOME SALES INDEX +0.5 PCT (CONSENSUS +1.0 PCT) TO 110.9 - NAR"
Matthew Graham  :  "RTRS- FED'S GEORGE SAYS NEED TO WAIT AND SEE WHETHER U.S. ECONOMY IS STRONG ENOUGH FOR FED TO RAISE RATES "
Matthew Graham  :  "RTRS- US PRELIM Q2 GDP +3.7 PCT (CONSENSUS +3.2 PCT), PREV +2.3 PCT; FINAL SALES +3.5 PCT (CONS +2.9 PCT), PREV +2.4 PCT"