It was an exceptionally slow day for bond markets with the exception of some tension, at times, during the morning hours.  Treasuries and MBS both began the day in weaker territory with currency fluctuations being the key motivation early in the overnight session.  Weakness in European bond markets set the tone during the 2nd half of the overnight session.  None of the above amounted to a "big deal" in any interesting way.

Bonds weakened a bit more, following stronger than expected Import Price data (+0.4 vs +0.2 forecast), but soon found their footing.  10yr yields bounced at 2.434% at the NYSE open and went no higher for the rest of the day.

Weaker than expected Consumer Sentiment helped the recovery at first, but gains were interrupted by the announcement that the Fed's Tarullo will retire earlier than expected.  Bonds weakened in response because this moves up the timeline for the Fed board majority being appointed by Trump, and traders generally feel the Fed will be more hawkish based on the names being thrown around.

Bonds were able to get over that speedbump fairly quickly and coast sideways for the rest of the day.  MBS did slightly better than Treasuries.  In fact, Fannie 3.5s ended the day 1/32nd in the green.  10yr yields were 1.25bps higher.


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 3.5
102-10 : +0-01
Treasuries
10 YR
2.4091 : +0.0121
Pricing as of 2/10/17 4:55PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:18AM  :  Consumer Sentiment Slightly Weaker. Bonds Slightly Stronger
9:49AM  :  Bonds Mostly Marching to Own Beat; Oil Making Things Slippery

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Andy Pada, Jr.  :  "how many of you are using Day 1 Certainty?"
Matt Hodges  :  "one would hope pricing would be higher, JA"
Jason Anker  :  "lower"
Matt Hodges  :  "i have one. What will FNMA 3.5 price be next Wednesday"