Coming into today, bond markets were amped up.  UK 10yr yields hit new all-time lows yesterday.  German 10yr yields were close to hitting all-time lows.  And 10yr yields in the US looked like they would take another crack at the 1.52% range boundary (they'd broken below yesterday and needed to make gains today in order to "confirm").  

But things went south almost right from the start.  There was no traction for bond markets in the overnight trading session--a fact that some traders blame on Japan being on vacation today.  European yields began rising right out of the gate.  That's bad timing for us, because it makes it look like German 10yr yields are making yet another "higher low" leading up from early July's all-time lows.  

Adding insult to injury was the fact that British yields managed to rally only to bounce right in line with yesterday's all-time lows.  With that, the sense was quickly building that today would not be the day for Treasuries to attempt to confirm their range breakout.  

The cautionary feeling was only amplified by surging stock and oil prices.    The 30yr bond auction at 1pm was inconsequential as the tradeflow momentum steamrolled bonds right back into the previous range to await tomorrow's Retail Sales.


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
103-19 : -0-09
Treasuries
10 YR
1.5660 : +0.0650
Pricing as of 8/11/16 3:58PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:08PM  :  ALERT ISSUED: If You Haven't Seen a Reprice Yet, You Probably Will
12:14PM  :  ALERT ISSUED: Selling Continues; Negative Reprices Becoming Likely
11:06AM  :  ALERT ISSUED: Negative Reprice Risk Increasing
10:54AM  :  ALERT ISSUED: Prepare For Further Weakness And Hope We Don't See It

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "B"
Matthew Graham  :  "RTRS - PRIMARY DEALERS TAKE 27.65 PCT OF U.S. 30-YEAR BONDS SALE, DIRECT 10.9 PCT AND INDIRECT 61.45 PCT"
Matthew Graham  :  "RTRS - U.S. 30-YEAR BOND BID-TO-COVER RATIO 2.24, NON-COMP BIDS $5.55 MLN"
Matthew Graham  :  "RTRS - U.S. SELLS $15 BLN 30-YEAR BONDS AT HIGH YIELD 2.274 PCT, AWARDS 51.98 PCT OF BIDS AT HIGH"
John Tassios  :  "hoping 30 year auction will stabilize mkt and bring buyers in. Should have good foreign bidders."
Matthew Graham  :  "Current yield expectation for the auction is 2.275, and the average 30yr refunding (what today's is) comes in about 1bp higher. Bid to cover has been in the 2.2's and indirects around 60%. More on this jargon here: Treasury Auction Jargon, Definition, and Significance "
JOSEPH BUXTON  :  "yeah, not even close. Previous record for my office was $2500 in Hawaii for an appraiser that stated he would have to go to multiple islands for comps."
Curt Sandfort  :  "safe to say $3700 is not within the tolerance, right?"
JOSEPH BUXTON  :  "Just got quoted $3700 for an appraisal in Oregon. I'm going home for the day."
Jason Anker  :  "with NO MI"
Clay Schmeisser  :  "with no MI?"
Jason Anker  :  "Yea, I can do that CS"
Victor Burek  :  "and with no MI?"
Arman G.  :  "CS depends what your comp is but 3.5-3.625 is within my range"
Clay Schmeisser  :  "anybody able to quote this? 778 FICO, O/O pur, 90% LTV, $400k purchase, $360k loan 30yr NO MI, par? Buyer sent me an LE with this and the other guys rate is 3.5% and I am here just like whoa"