Today was the 4th day of the year that stocks closed higher than they opened.  In other, far from coincidental news, it was also the 4th day of the year that 10yr yields closed higher than they opened.  That's really all there is to it--at least until the dramatic downtrend in stocks is officially over.  Until then, these periodic bounces will continue to result in bonds bracing for bigger impacts.

In other words, if stocks were to continue significantly higher tomorrow, bonds would rather be in position for it, instead of playing catch-up.  The 4bps increase in 10yr yields is a mere token in the bigger picture, but it gets bonds a small cautionary head start without being onerous or difficult to reverse.  We'd need to see serious strength in stocks before we see a serious bond bond market bounce.

MBS outperformed, as they tend to do when Treasuries sell off.  Fannie 3.0s were down only 7 ticks on the day.  Rate sheets outperformed MBS as lenders tend to have extra margin amid ongoing rallies.  This allows them to better absorb these sorts of pull-backs. 

Economic data fell on deaf ears.  No surprise there.

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
104-03 : -0-01
10 YR
2.0280 : +0.0460
Pricing as of 1/21/16 5:28PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:06PM  :  ALERT ISSUED: Negative reprice risk now becoming more widespread
10:45AM  :  ALERT ISSUED: Some Lenders May Already Be Considering Negative Reprices
10:02AM  :  Bonds Balancing Input From EU and Equities

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Doug Seder  :  "I just heard about that for the first time the other day, when did the "trend data" news first come out?"
Timothy Baron  :  "I'm so excited for the "trend data" credit reports that have to be used on Fannie loans starting in June. Our credit team says credit reports will be at least 40-50 pages."