All eyes were on Yellen's 10am speech from Jackson Hole, then all eyes were closed as traders fell asleep from boredom.  Yellen said nothing we didn't already know, although one headline (about the case for a rate hike being stronger) sent rates initially higher.  Once markets realized they already knew that, rates moved back down to the lows of the week.

Comments from Fed Vice Chair Fischer followed shortly thereafter and pushed bonds back in the other direction.  Unfortunately this move was exacerbated by lower volume and liquidity of a summertime Friday afternoon.  Too, markets could be justifiably concerned about next week's data putting a hawkish spin on a relatively neutral Yellen speech.  

On a positive note, the weakness brings bonds only right top the edge of the recent range. 

The bigger question is: What Next?!

What indeed!  As the case continues to be, one thing the Fed is serious about is the fact that they're "data dependent."  With that in mind, there is a ton of data next week.  All the normal "first week of the month" top-tier releases are coming out, including NFP on Friday.  If the tenor of the data clearly supports the Fed's ability to make a firmer commitment (either to hiking or waiting), this is when we might expect to see a more pronounced move outside the recent range.


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
103-15 : -0-07
Treasuries
10 YR
1.6350 : +0.0590
Pricing as of 8/26/16 3:00PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:15AM  :  And We're Back... (Into Positive Territory)
10:07AM  :  Yellen Wires; Update on Reaction
10:01AM  :  ALERT ISSUED: First Move Following Yellen is Negative
8:44AM  :  Bonds Doing Fine Following Flat GDP

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Scott Lushing  :  "we will be green by 11"
Matthew Graham  :  "RTRS - YELLEN SAYS FED IN FUTURE MAY WISH TO EXPLORE BUYING WIDER RANGE OF ASSETS TO DEAL WITH DOWNTURNS"
Matthew Graham  :  "RTRS - YELLEN SAYS POTENTIALLY RAISING FED'S INFLATION TARGET, GDP TARGETING ARE ALSO IMPORTANT RESEARCH TOPICS"
Matthew Graham  :  "RTRS - YELLEN SAYS FORWARD GUIDANCE, BOND PURCHASES WILL REMAIN KEY PART OF FED'S TOOLKIT"
Matthew Graham  :  "RTRS - YELLEN SAYS RANGE OF POSSIBLE RATE HIKE PATH IS WIDE, SHOCKS COULD CHANGE PATH"
Matthew Graham  :  "RTRS - YELLEN SAYS FED'S MONETARY POLICY IS NOT ON PRESET COURSE, DEPENDS ON DATA"
Matthew Graham  :  "RTRS - YELLEN SAYS U.S. ECONOMY NEARING FED'S EMPLOYMENT, INFLATION GOALS"
Matthew Graham  :  "RTRS - YELLEN SAYS GRADUAL RATE HIKES OVER TIME ARE 'APPROPRIATE'"
Matthew Graham  :  "RTRS - FED'S YELLEN SAYS CASE FOR INTEREST RATE INCREASE HAS STRENGTHENED IN RECENT MONTHS"