Overnight weakness almost ruined it, but 10yr yields just barely held inside the necessary levels to claim their third straight "inside day."  In other words, the entire trading range of the past 3 days has fallen inside Tuesday's trading range.  While we continue to err on the higher side of that range, today saw a modest move in the right direction after the GDP data came out.

It wasn't the GDP headline that did the trick (after all, that was as-expected at +2.6 vs +2.6), but rather the inflation-related internal components as outlined in this update.

Early afternoon headlines concerning a North Korean missile launch helped bonds pick up a bit more ground before they drifted sideways into the close.  

10yr yields ended the day down 2.9bps at 2.29% and Fannie 3.5 MBS picked up 5/32nds of a point to end at 102-30 (102.938).


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
102-30 : +0-05
Treasuries
10 YR
2.2906 : -0.0194
Pricing as of 7/28/17 6:29PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
8:39AM  :  Bonds Rally (at first) on GDP's Weak Inflation Metrics

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "that would be the conventional wisdom with respect to addressing low inflation! Although I think he means to keep rates relatively lower as opposed to hiking aggressively (rather than suggesting rate cuts)"
Victor Burek  :  "so taper and cut rate"
Matthew Graham  :  "RTRS - KASHKARI SAYS HE WANTS TO TRIM BALANCE SHEET GRADUALLY, AND TO ADDRESS LOW-INFLATION ISSUE WITH INTEREST-RATE POLICY"
Matthew Graham  :  "RTRS - KASHKARI SAYS THERE ARE COSTS TO HAVING BIG BALANCE SHEET"