Today was shaping up to be very slow and boring, with bond markets making some inconsequential gains as traders shed risk ahead of this weekend's French election.  

How did France get important?  In a nutshell, one of the candidates (Marine Le Pen) is billed as a populist who wants France to divorce the EU, or at least to work out some sort of separation agreement.  Anything that calls the stability of the EU into question tends to be a big deal for markets.  Brexit was one thing (because Great Britain was never part of the monetary union), but a Frexit would be a much bigger deal.  We're not necessarily sure a Le Pen victory would result in France exiting the EU, but the mere possibility of such things has traders on edge.

Markets are fairly sure LePen won't win, but they'd like confirmation, and will have it either way on Monday.

Just when everyone was about to fall asleep for the day (with alarms set for Monday morning's post-French-election trading response), tax reform newswires hit.  Trump told the AP that he would release a tax plan next week and that it will be bigger than "any tax cut ever."  

That was the turning point for bonds (the concept of tax cuts has generally put upward pressure on stock prices and interest rates).  Treasuries and MBS both gave up moderate gains to end the day in just slightly weaker territory.  Several lenders repriced for the worse.


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
102-28 : -0-01
Treasuries
10 YR
2.2463 : +0.0053
Pricing as of 4/21/17 5:22PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:48PM  :  ALERT ISSUED: Negative Reprices Now More Likely (For Lenders Still Tuned In)
2:01PM  :  ALERT ISSUED: Yields Jump on Trump Tax Plan Wires; Negative Reprice Risk Increases
9:58AM  :  Slightly Stronger Despite European Bond Cues

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  ""Trump tells AP he will unveil tax plan next week that includes "massive" tax cut for individuals and businesses.""
Jason Zimmer  :  "most people don't actually "put" money elsewhere, so pay it off. If you are an active investor, i can get behind the 30 year argument. Most people aren't active investors."
Jason Anker  :  "if there were a good answer to that question CR then we'd also only have one flavor of ice cream and we'd all drive the same car"
Dominick Cordone  :  "im a 30 yr guy. Keep liability to a minimum, pay on a 15 if you have the ability, when and if you choose, and make money on your money."
Jason Zimmer  :  "i 'm on 15 and love it."
Caroline Roy  :  "got a mortgage/borrowed money philosophy question for you all. Who is in favor of always borrowing on a 30 year and putting money elsewhere and who is an advocate of 20 or 15's with the goal of actually paying houses off? I realize this is a wide net question, but i had a client in my office yesterday who was passionate about the "never pay off your mortgage" on purpose philosophy."