MBS and Treasury yields moved into weaker territory after the 8:30am release of CPI and Jobless Claims this morning.  One can only surmise that investors were relieved, to some extent, to see that consumer prices didn't fall victim to the same cataclysmic failure seen in producer prices yesterday.  Perhaps a few other investors read into the size of the 'beat' in Jobless Claims (255k vs 270k forecast, another generational low). 

While there was definitely movement at 8:30, it didn't ultimately create any new realities for bond markets.  Treasuries were already in the process of moving weaker in the overnight session.  Although the 8:30am reaction added disproportionately to the weakness, closing levels were very much in line with the trend. 

In other words, bond markets were a bit more resilient than it seemed like they should have been as the day progressed.  This was especially true in light of the strong performance in equities and the recently strong connection between equities and bonds.  Ultimately, bond markets simply looked like they were leveling off after 2 strong days of trading while stocks moved up right to the bleeding edge of their current glass ceiling (2023 in terms of S&P or 2020 in terms of S&P futures as seen below).

2015-10-15 stocks vs bonds


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
101-20 : -0-05
FNMA 3.5
104-15 : -0-04
FNMA 4.0
106-22 : -0-02
Treasuries
2 YR
0.6050 : +0.0520
10 YR
2.0300 : +0.0550
30 YR
2.8750 : +0.0410
Pricing as of 10/15/15 7:54PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:25AM  :  Bond Markets Modestly Weaker Overnight. Data Not Helping

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "jay - freddie does not provide as much detail as fannie so you as a seller rep and warrant more"
Matthew Graham  :  "futures are actually now breaking the ceiling, yet 10's remain under 2.04. Seems very good at the moment. "
Sung Kim  :  "so thats good right"
Matthew Graham  :  "exactly"
Sung Kim  :  "higher? or today's move seems muted in light of the stock move?"
Sung Kim  :  "MG - u saying that 10y tsy should be highger?"
Jay Rodriguez  :  "Freddie Direct No Overlays - For Judgments on Credit report, does LP pick them up. Can we disregard with Streamlined/Accept? Or is it underwriter discretion?"
Matthew Graham  :  "Bonds don't want to play that game in the normal way. Very impressed"
Sung Kim  :  "stocks today MG?"