On the surface, today was a boring day for bond markets.  10yr yields ended less than a bp lower than yesterday's close and Fannie 3.0 MBS were completely unchanged.  But as far as gleaning information, it wasn't a total loss.  

Late in the overnight hours, bonds sold-off somewhat abruptly as a big seller decided it was time to sell.  Weakness lasted from roughly 6:33am to 6:58am ET and took 10yr yields from 1.76 to 1.788.  At the time, all we knew is that sellers got cold feet as yields approached 1.80, but we didn't know if domestic market participants would agree with 1.788 as an upper boundary for the day.

They agreed!  Bonds scarcely moved until the CME open at 8:20am, but began to improve in fits and starts.  The 10am Consumer Confidence data helped solidify today's high yields as "buying opportunities" and paved the way for additional gains through 11am.  By no means did we witness the sort of strength needed to challenge the lower end of the recent rate range, but at least we saw some willingness to buy bonds at the right price (not to mention a good idea of  the "right price" itself).  Bottom line: the upper end of the yield range was reinforced


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
103-09 : +0-01
Treasuries
10 YR
1.7580 : -0.0050
Pricing as of 10/25/16 4:58PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:22AM  :  Slight Boost From Consumer Confidence Data--Emphasis on 'Slight'

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Clayton Sandy  :  "I don't know, Hugh. Sounds made up"
Hugh W. Page  :  "Per Fannie Guides: The following property types are not subject to these limitations, even if the borrower is personally obligated on a mortgage on the property: •commercial real estate, •multifamily property consisting of more than four units, •ownership in a timeshare, •ownership of a vacant lot (residential or commercial), or •ownership of a manufactured home on a leasehold estate not titled as real property (chattel lien on the home)."
Linda Miller  :  "Sorry hit enter too soon. Underwriter is wrong. The commercial properties do not count towards the max."
Josh Olson  :  "This is what i'm getting from my underwriter: "Commercial property should be cash flowed exactly the same way as residential. Commercial loans rarely report on personal credit but the attachment looks like they are personally obligated. They will be included in the max 10 financed properties, as from the statement, it appears the borrower is personally liable for that debt." Is she wrong? I always thought they DIDN'T count against max 10."
Sung Kim  :  "doesnt count"
Josh Olson  :  "I have a client that has a commercial loan that has 4 properties secured to it. Do all 4 count against his financed properties for Fannie (limit 10) or does it not count because it is a commercial loan?"