Dovish vs Hawkish: This refers to how accommodative the Fed's policy stance might be.  Have you ever seen a hawk stare down its prey?  That's how a hawkish Fed looks at inflation (i.e. "I'm really close to swooping in and killing that!").  Doves, on the other hand--well... I don't know what doves do, but I know they're not hawkish!

When it came to today's FOMC announcement, the Fed had a chance to send a clear signal on their rate hike intentions (if they had any).  While they did dial up the hawkishness just a bit, they stopped short of the sort of overt telegraph seen in last October's meeting (when they said "in considering whether it will be appropriate to raise [rates] at its next meeting").  

As such, markets (led by word-parsing computer programs) spent the first few seconds reacting to the more hawkish parts of the statement.  The Fed thinks the economy is doing better?  Sell bonds!  But when the clear telegraph was nowhere to be found, human decision makers said "no... BUY bonds!"  And buy they did.  10yr yields traded all the way down to 1.50 and Fannie 3.0s added nearly 3/8ths of a point versus yesterday's latest 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
103-24 : +0-11
Treasuries
10 YR
1.5010 : -0.0600
Pricing as of 7/27/16 4:48PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:14PM  :  Reuters Newswires on FOMC Announcement
2:08PM  :  Bonds Already Bouncing Back to Stronger Levels
2:02PM  :  ALERT ISSUED: First Move After Fed is Negative
8:41AM  :  Bonds React Positively to Durable Goods Miss

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "i am pretty sure it was made up"
Matthew Graham  :  "sorry for the googling. It means "twisty-ness""
Sung Kim  :  "did you just make up a word using tortoise?"
Matthew Graham  :  "bring it full circle, SK. Hike or no hike BOTH mean lower rates. The only question is the tortuosity of the path between here and there."
Sung Kim  :  "i used to be in the camp that thought rate hike = lower rates, but the market clearly doesnt think the same, so we def want no hike"
Steve Chizmadia  :  "ctrl c + ctrl v beats MG's typing skills.... Barely"
Jason Anker  :  "Steve's got this MG"
Matthew Graham  :  "TS, between 1.54 and 1.59 = nothing's happening. Between 1.51 and 1.64 = very little is happening. Outside those levels, moderate momentum is building in the direction of the breakout."
Steve Chizmadia  :  "By: Matthew Graham | 3:24PM Last week saw the yields increasingly hold inside the "new narrow" range between 1.54 and 1.59. Frankly, I felt like it was a long shot for that range to persist all the way to Fed day, yet here we are on the eve of tomorrow's Fed announcement with a intraday high of 1.589 and a low of 1.537. Close enough!"
Tom Sawyer  :  "MG is there a level on the 10 year that we should be paying close attention to?"
Tammy Meng  :  "until the results came out"
Tammy Meng  :  "i thought brexit vote was pretty obvious"
Sung Kim  :  "its pretty obvious"
Tammy Meng  :  "I think that will have a greater effect on whether we see the rate hike"
Tammy Meng  :  "we will know whether Clinton or trump gets elected by September right?"
Sung Kim  :  "this prevents the sept hike Matthew Graham: 2:00 pm - FED SAYS WILL CONTINUE TO ASSESS INTERNATIONAL DEVELOPMENTS IN DETERMINING WHEN TO RAISE RATES"
Justin Macagba  :  "talk about knee jerk response..."
Oliver Orlicki  :  "Sub 1.5 by EOB"
Oliver Orlicki  :  "LEt this settle out"
Matthew Graham  :  "- FED REPEATS EXPECTS ECONOMIC CONDITIONS WILL EVOLVE IN WAY THAT WARRANTS "ONLY GRADUAL INCREASES" IN FED FUNDS RATE"
Matthew Graham  :  "- FED REPEATS WITH GRADUAL ADJUSTMENTS TO MONETARY POLICY, ECONOMIC ACTIVITY WILL EXPAND AT MODERATE PACE, LABOR MARKET WILL STRENGTHEN"
Matthew Graham  :  "- FED SAYS INFLATION REMAINS BELOW TARGET, MARKET-BASED EXPECTATIONS REMAIN LOW; STILL SEES RISE TO 2 PCT OVER MEDIUM TERM"
Matthew Graham  :  "- FED SAYS WILL CONTINUE TO ASSESS INTERNATIONAL DEVELOPMENTS IN DETERMINING WHEN TO RAISE RATES"
Matthew Graham  :  "RTRS- FED SAYS LABOR MARKET STRENGTHENED SINCE JUNE MEETING, LABOR UTILIZATION HAS INCREASED IN RECENT MONTHS"
Matthew Graham  :  "RTRS - FED SAYS NEAR-TERM RISKS TO THE ECONOMIC OUTLOOK "HAVE DIMINISHED," ECONOMY EXPANDING AT MODERATE PACE"
Matthew Graham  :  "RTRS - FED LEAVES TARGET INTEREST RATE UNCHANGED AT 0.25-0.50 PCT"
Sung Kim  :  "sub 1.50 today"