Quite simply, markets are waiting for the last 3 days of this week before gleaning any "takeaways" about the current state of financial markets, the economy, inflation, or Fed policy.  Everything over the 1st 2 days of the week has therefore amounted to a pre-game show--and not a very exciting one at that.  

For the most part, bond yields have held inside the same trading range seen since last Thursday morning, although they did begin to test a break lower after today's 3pm close.  Officially, however, yields closed above the 2.362% floor that's been intact for 4 days now.  

With market participants fully aware of the absence of actionable calendar items on the first 2 day of the week, it hasn't been too surprising to see lighting trading conditions in terms of volume and volatility.  The side effect of the light volume and lack of inspiration is that some headlines will end up moving markets more than they otherwise would in the presence of more robust volume. 

Today's Trump Jr. Twitter news was just such an example.  It prompted a "risk-off" move for bonds.  10yr yields moved into positive territory shortly thereafter, but just barely.  Comments from Fed's Brainard didn't hurt the move, which saw yields hit their best levels just before 1pm.  


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
102-20 : +0-03
Treasuries
10 YR
2.3587 : -0.0123
Pricing as of 7/11/17 4:41PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:52PM  :  At Best Levels After Brainard Comments
11:31AM  :  Bonds Rally, Stocks Slide, Apparently on Political Headlines
9:45AM  :  Bonds Slightly Stronger Into NYSE Open; MBS Turn Green

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "just another small addition to the sense that the Fed may be cooling off with respect to urgent removal of accommodation--not much different here than her last headlines"
Christopher Stevens  :  "Front running what Yellen will say tomorrow?"
Matthew Graham  :  "RTRS - BRAINARD SAYS WANTS TO MOVE CAUTIOUSLY ON FURTHER RATE HIKES TO HELP BOOST INFLATION BACK TO 2 PERCENT TARGET"
Matthew Graham  :  "RTRS - BRAINARD SAYS ONCE BALANCE SHEET REDUCTION UNDER WAY, SHE WILL ASSESS INFLATION BEFORE DECIDING ON FURTHER INTEREST RATES RISES"
Matthew Graham  :  "RTRS - BRAINARD SAYS SHE CONSIDERS NORMALIZATION OF INTEREST RATES TO BE 'WELL UNDER WAY'"
Matthew Graham  :  "RTRS - FED'S BRAINARD SAYS SHE BELIEVES IT APPROPRIATE 'SOON' TO BEGIN BALANCE SHEET REDUCTION IF ECONOMIC DATA HOLDS UP"
Christopher Stevens  :  "Fed's Brainerd- Fed likely will act 'soon' to begin running off it's $4.5 trillion balance sheet as long as the economy cooperates. Fed may be near its limit in terms of rate hikes"
Christopher Stevens  :  "I will be very interested in the earnings release from C, JPM, WFC and PNC Friday and what their opinion is of the market going into the end of the year."
Victor Burek  :  "The GDPNow model forecast for real GDP growth (seasonally adjusted annual rate) in the second quarter of 2017 is 2.6 percent on July 11, down from 2.7 percent on July 6"