The S&P closed at its lowest level since April 2014 today and intraday prices were at their lowest levels since February 2014.  If yesterday's $28/barrel oil prices didn't sound low enough, they nearly broke below $26/barrel today.  In short, global risk markets continued melting down in grand fashion and bond markets continued picking up the pieces.

Even after equities markets staged a fairly serious attempt at bouncing, stocks remained in negative territory on the day and bond markets retained most of their overnight gains.  After coming into the day at 101-18, Fannie 3.0s went out the door at 101-16, more than a 3/8th point gain on the day.  10yr yields ended 6.8bps lower at 1.988. 

With Housing Starts coming in at 1.149 vs 1.20 forecasts and CPI missing estimates by 0.1, we can't really make a case that economic data should have had any impact.  If we were forced, we'd probably agree that 2 reports coming in weaker would be good for bonds.  Instead, that was one of the only times of day that bond markets were selling, further reinforcing the fact that bonds are primarily watching the unfolding drama in equities markets.  The depth and longevity of the rally is only limited by the same facets of stocks' bear market.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.5
104-06 : +0-01
10 YR
1.9880 : -0.0480
Pricing as of 1/20/16 5:35PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:05PM  :  ALERT ISSUED: Reprice Risk Considerations as Rally Ebbs
1:15PM  :  Lowest S&P in Nearly 2 years. Bonds Like It
10:18AM  :  Same Old Story: Bond Mood Set By Stocks

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Dustin McAlister  :  "When are builders with mortgage companies going to learn it is better to let them leave versus taking a EPO fee when they refinance 2 months later...."
Alan Craft  :  "Due to mortgage taxes and high cost of title insurance, you need a .5% drop to benefit"
Alan Craft  :  "both"
Sung Kim  :  "i think you need more appreciation not lower rates"
Hugh W. Page  :  "I think we need much much lower rates in FL to generate arefi boom unfortunately"
Oliver Orlicki  :  "Great refi boom of 2016 here we come"
Hugh W. Page  :  "wow is the Dow really down over 3% ? ouch"
Ira Selwin  :  "That Chase reprice is only hitting their Non-Agency (as expected). No change to their Conv/FHA."
Scott Burman  :  "
REPRICE: Chase - Worse