Today could have been better, but it could have been much worse.  After the big spike that followed Friday's jobs report, bonds were on the weaker edge of their post-Brexit range.  Breaking it would be "bad," in that it would suggest a shift in momentum toward higher rates and the end of the near-all-time-low post-Brexit range.

Would rates ultimately make it back to these levels even if this range breaks?  I think so.  But could it take weeks or months to accomplish?  That's certainly possible.  And while "breaking this range" could merely be a move to the "high 3's" for 30yr fixed rates, it sounds more palatable to not even have to find out in the first place.  To that end, we live to fight another day.

Treasuries were initially stronger in the overnight session, but domestic traders came in the door with selling on their mind.  Much of the weakness was driven by another active slate of corporate bond issuance.   As always, Treasuries were more impacted by the corporate scene than MBS, but both calmed down and drifted almost perfectly sideways once the morning's corporate announcements were out of the way.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
103-21 : -0-01
10 YR
1.5920 : +0.0100
Pricing as of 8/8/16 5:29PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:57PM  :  Heads-Up: Some Erratic Swings in MBS
10:13AM  :  Bonds Find Support at Range Boundary (Hopefully)
9:53AM  :  ALERT ISSUED: Multiple Sources of Selling Pressure. Early Reprice Risk

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
John Rodgers  :  "prep your agent and client that it could be a deal killer"
John Rodgers  :  "we do a ton of VA and it's pretty much impossible to get the value at sales price once Tidewater invoked."
Arman G.  :  "I had 2 tidewater notices this year. Basically the appraiser was advising that value may be short and you have time to provide additional information that would support the value. They were both on purchases. Hence, the appriasers request to support value."
John Rodgers  :  "Tidewater is a heads up that your value is coming in low. Your SAR will need to get with the appraiser and ask him what is needed then your office calls the agents to deliver that info. They usually need more comps to support the value."
Alan Craft  :  "VA is correct and appraiser is wrong"
John Paul Mulchay  :  "Tidewater would make for a good educational piece, IMO>"
Ryan Ross  :  "Does anyone have any experience with VA Tidewater Initiative? My appraiser is invoking this so I looked up the parameters and it looks like this initiative was rescinded back in 2007. I called the VA any they told me that the appraiser needs to submit the appraisal and then we need to ask for a reconsideration of value. When I asked him to send it, he told me that it was against VA guidelines... thoughts?"