What's a risk meltdown?  What's a "risk market" for that matter?  This is just a shorthand term for anything investors are normally buying when stocks and broader economies are improving.  The most quintessential risk market is the equity market, but in the current case, oil is in the same boat. 

It's not hard to imagine that a risk meltdown benefits the safer haven markets.  The quintessential safe haven (apart from cash) is the US Treasury market, with other low-risk bonds close in tow (like MBS).  The safe havens have been basking in the warm red glow from the risk market conflagration, and today's bonfire was particularly bright.

S&P's are off their lows for the day, but remain down more than 2% as the NYSE close approaches.  This translated into more than a 9bp drop in 10yr yields, taking them briefly to 1.986, but they're currently back up over 2% as equities recover.  Fannie 3.0 MBS were up more than half a point, but are now heading out the door sideways with just under a 3/8ths point gain.  The trend is our friend until it's not our friend any more. 

2016-1-15 10yr

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 3.5
104-02 : +0-09
Treasuries
10 YR
2.0300 : -0.0680
Pricing as of 1/15/16 4:00PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:05PM  :  Reprice Risk Considerations Heading Into The Weekend
8:52AM  :  Data and Other Factors Align; 10yr Under 2 Percent!
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Dominick Cordone  :  "what the??? now we know ANYTHING can happen"
Damon Embler  :  "
REPRICE: Flagstar - Better
"
Bryce Schetselaar  :  "Its impressive to see this action before a 3 day weekend"
Ira Selwin  :  "That Chase reprice appears to only be on their Non-Agency, so they march to the beat of their own drum on that product,"
Alan Craft  :  "Check MG's comment at 12:02"
William McGuirt  :  "Makes no sense"
William McGuirt  :  "
REPRICE: Chase - Worse
"
Ted Rood  :  "yup, learned that the hard way on a deal that closed last month"
Scott Valins  :  "streamlines now require 0.5 improvement in rate correct?"
Dominick Cordone  :  "expect a Flagstar worsening any minute now...."
Matthew Graham  :  "Pretty flat since rate sheets came out Stacey. Not likely at the moment, except perhaps among those 1-2 lenders that do pipeline control reprices (even those aren't likely, but at least possible later in the day)."