Bond markets came into the domestic session roughly unchanged, but soon found themselves under pressure.  Before 9am, concerns over the day's corporate bond issuance along with advancing equities conspired to push Treasury yields quickly higher.  That's "quick," mind you--not "much."

In other words, today's trading range was narrow for multiple sectors.  10yr yields remained between 2.028 and 2.077 with most trading happening between 2.05 and 2.03.  Fannie 3.0 MBS were similarly narrow with prices ranging from 101-14 to 101-22.  Even stocks had their narrowest trading range since 9/29. 

Along with the lack of any significant movement, we also didn't have much volume.  Perhaps market participants are gearing up for the 3-day weekend (Columbus Day) or perhaps the relatively empty calendar of events is just doing what it does best in terms of motivating trade. 

Whatever the case may be, the ground-holding in bond markets is somewhat reassuring in light of the negative technical outlook coming into the day.  This is all the more reassuring considering we're in the midst of an auction week.  I'm starting to wonder if Friday afternoon and Monday's heavy selling wasn't simply a head-start on the pre-auction concession that we typically find somewhere in the 48 hours leading up to the 10yr auction tomorrow at 1pm.


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
101-22 : +0-05
FNMA 3.5
104-19 : +0-05
FNMA 4.0
106-26 : +0-03
Treasuries
2 YR
0.6050 : -0.0040
10 YR
2.0320 : -0.0260
30 YR
2.8700 : -0.0290
Pricing as of 10/6/15 4:56PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:59AM  :  Sometimes Weakness is Just Weakness

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ted Rood  :  "after ctc"
Christopher Stevens  :  "JC- it looks like we are going to be sending after CTC or as close to closing date as possible. "
joon choi  :  "trid question, when are you guying sending out CD? after CTC?"
Alan Craft  :  "Trid only adds 2 days if you do everything right"
Sung Kim  :  "esign is auto sent"
Christopher Stevens  :  "that has to be hard with the LE and CD taking up 6 days or more (if mail delivery used)"
Christopher Stevens  :  "similar to what we have instructed our LO's to communicate (sans the supporting docs piece)"
Sung Kim  :  "email from an agent - My in-house lender stated “do not write any contracts with less than 45 days to settlement and to play it safe, write it for 60 days…..oh and the clock doesn’t start until we have the contract, and application with all the supporting documentation is submitted"