As the attached video suggests, "red happens."  It really does!  After all, if you were the puppet-master behind rate movement, and if you'd decided to make rates move lower for 35 years in a row, you wouldn't just drop rates from 15+ percent in 1981 to 1.5 percent the next day and call it good. 

Well, maybe you would, but the point is that markets never go anywhere in a straight line except over time frames of milliseconds.  There is always some push and pull.  When markets are making a strong move in any given direction, the pushing and pulling is out of balance.  We would call the smaller of the two movements the "correction" to the broader "trend."  

In the current case, the short term trend is sideways, so the pushing and pulling are relatively balanced.  With that in mind, it's no surprise (especially with the benefit of hindsight!) to see rates moving back to the top of the recent range after bouncing at the bottom of the recent range yesterday.  Bigger decisions and bigger movement are more likely to show up after we hear what Yellen has to say at Jackson Hole next week.

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
103-17 : -0-08
10 YR
1.5800 : +0.0440
Pricing as of 8/19/16 4:10PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:43AM  :  ALERT ISSUED: Negative Reprices Becoming More Likely
10:15AM  :  ALERT ISSUED: Bonds at Weakest Levels; Negative Reprice Risk Increasing

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "This is the same reason Q2 2015 surprised a lot of people here (because Q1 was -0.2)"
Matthew Graham  :  "biggest boost is how bad the previous number was combined with the fact that GDP is a period/period change as opposed to an outright number."
Jason Anker  :  "they chose different seasonal adjustments JA"
B C  :  "maybe the stellar NFP results"
Jeff Anderson  :  "What data points would boost their GDP forecast by that much? Something we are yet to see?"