Bond markets continue being forced to go wherever global equities markets tell them to go.  The sheer scale of the selling in China, Europe, and the US demands a safer place to park excess cash.  Bond markets get the nod, but only by default. 

In other words, yields were dragged lower against their will yet again.  There were no significant economic reports to motivate the gains--only global market fluctuations.

It's also increasingly clear that bonds are going to take the first chance they can get to do some selling of their own.  Earlier this morning, there were a few hours where equities and oil prices were making gains simultaneously.  Bonds wasted no time in moving 5bps higher (10yr yields).  MBS fared better than Treasuries into that weakness, but it was still enough for several lenders to issue negative reprices. 

After European markets closed, stocks resumed selling and bonds recovered.  Reprices came in the other direction later in the day.  Trading levels ended just slightly stronger vs yesterday. 

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
100-22 : +0-01
FNMA 3.5
103-23 : +0-01
FNMA 4.0
106-08 : +0-00
2 YR
0.9880 : +0.0320
10 YR
2.1910 : +0.0380
30 YR
2.9630 : +0.0370
Pricing as of 1/7/16 8:25PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:39AM  :  ALERT ISSUED: Losing Some Ground; Approaching Reprice Risk Territory

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jeff Anderson  :  "we've had a nice run the last 5-6 days. We don't want to go too fast, right? Plus NFP tomorrow."
Jason Anker  :  "NFP reaction tomorrow should tell the tale"
Hugh W. Page  :  "I think that the lack of a significant rally in bonds with stocks plunging is disappointing and perhaps indicative of the tough sledding bonds may have to improve significantly moving forward."
Matthew Graham  :  "I'd also probably add EU into the mix, and note that Treasuries and stocks began losing ground after EU trading closed."
Brian McFarlane  :  "do yourselves a favor and don't check your 401k balance."
Matthew Graham  :  "This is one of those instances where bonds are only grudgingly rallying due to influences from related markets."
Oliver Orlicki  :  "down 400 points and we are only up a couple of ticks"
Victor Burek  :  "stocks"
Justin Bayle  :  "So what's with the about face in the past hour?"
Marc Perez  :  "MG, nice quote on CNBC."