• Weaker Durable Goods and Consumer Confidence Didn't Help
  • Bonds continued slow, steady selling trend
  • 10yr yields topped out at 1.94
  • Fannie 3.0s lost about an eighth leading some lenders to reprice

The overnight session began innocently enough for bond markets with Treasuries holding sideways to slightly stronger.  Once the European session got underway, all bets were off.  Treasuries were pulled higher PRECISELY from the start of European bond trading to the close. Incidentally, the European close coincides with Treasury auction time slots, so we can't necessarily say the motivations were exclusively European.  We could just be looking at nervous bond markets checking anxiety-inducing events off the list ahead of the Fed.

Incidentally, the European close coincides with Treasury auction time slots, so we can't necessarily say the motivations were exclusively European.  We could just be looking at nervous bond markets checking anxiety-inducing events off the list ahead of the Fed.  Either way, bond markets leveled off and went sideways after the 5yr Treasury auction at 1pm.  

Data was shunned, with the possible exception of a brief, token rally following the Durable Goods data.  It's easy to forget that happened, considering it was over within 15 minutes of the release.  Weaker Consumer Confidence didn't even get a token reaction before bonds simply continued toward weaker levels.


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
101-30 : -0-03
Treasuries
10 YR
1.9310 : +0.0290
Pricing as of 4/26/16 5:18PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:47PM  :  ALERT ISSUED: Just In Case You Need One More Alert...
11:27AM  :  ALERT ISSUED: Now Entering Reprice Territory
11:02AM  :  ALERT ISSUED: Bonds At Weakest Levels Despite Data
8:54AM  :  Durable Goods Weak Enough for Bonds to Feel It, Temporarily

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "remember how 'oversold' we were in May 2013?"
Hugh W. Page  :  "Someone once told me that just because the trend has gone so far in one direction doesn't mean it can't continue to go in that direction for longer than you care it to."
Matthew Graham  :  "exactly"
Sung Kim  :  "when is the bounce happening?"
Scott Valins  :  "boo!"
Matthew Graham  :  "yes, but you're scaring me if you're attempting to draw some conclusion about a bounce."
Scott Valins  :  "so two out of the three you typically reference are yes or close to yes?"
Matthew Graham  :  "fast stochastics, yes, slow, no. RSI, almost"
Scott Valins  :  "MG, are technicals showing oversold?"