We might have expected a bigger movement in the wake of the colossal improvement in New Home Sales (654k vs 582k previously, 580k forecast), but bonds barely budged.  In fact, the first move following the data was into STRONGER territory for bonds.  

Treasuries eventually gave up some ground heading into the afternoon, but MBS didn't follow.  The differences in relative performance are far from troubling.  They were simply more noticeable because Treasuries were in weaker territory day-over-day while MBS were stronger.  In other words, Treasuries were red and MBS were green, but both were close enough to 'unchanged.'

The 2yr Treasury auction went off without a hitch, but it's tomorrow's 5yr auction that is more capable of causing movement for the MBS coupons we follow (Fannie 3.0, at the moment).  Even then, Treasury auctions are not major market movers in general these days.  For that, markets continue to wait for Yellen on Friday--the only event this week with significant potential.  Still, "potential" is the operative word there.


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
103-23 : +0-02
Treasuries
10 YR
1.5490 : +0.0100
Pricing as of 8/23/16 4:01PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:51AM  :  Treasuries Back in Red; MBS Not Following
10:09AM  :  New Home Sales Surge to Post-Meltdown High; Bonds Barely Budge

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "Correct, it doesn't really deserve a grade as far as market movement implication is concerned."
Matt Hodges  :  "did the 2 year deserve a grade, MG? Always assumed it was pass/fail and this was a pass."
John Tassios  :  "bumpy FED msg's between hawkish, dovish stances."
Matthew Graham  :  "makes for a bumpy chart"
Matthew Graham  :  "not much volume in 2's compared to 5/10/30's"
Sung Kim  :  "look at the 2y tsy chart, its not pretty"
John Tassios  :  "with Yellen speaking in 3 days - an A is very good results for 2 yr TSY auction. Looks like bond mkt is leaning dovish stance from Yellen"
Bryce Schetselaar  :  "I would guess 3.5% is more prevalent on your scenario HP"
Jason Anker  :  "3.25 @ 80 is skinny but I'm sure some are there"
Jason Anker  :  "@ 80ltv 3.375"
Hugh W. Page  :  "my guess is that's not the most prevalent out there. Nice rate though :)"
Nathan Miller  :  "no c/o? bigger l/a 3.25"
Hugh W. Page  :  "What's the most prevalent Par C30 Rate for high fico 80LTV primary loans out there? Me thinks my secondary is being very stingy."
Steve Schneider  :  "lol... VERY NICE. searched for 15 minutes and answers here in 60 seconds. Worth. Every. Penny."