The chart in this morning's Day Ahead showed consolidation patterns (lower highs and higher lows) in both German Bunds and US Treasuries.  For the latter, the consolidation pattern remains intact after an attempted breakout today.  In other words, yields tried to move below the lower line but were unable to do so.

The setup for this attempted rally had to do with a series of events this morning.  It began with the ADP Employment data, which was fairly tepid, but positively revised in the previous month by more than 30k.  This was enough to cause modest selling pressure for bonds, but essentially no volume.  That let us know traders were likely waiting for the 8:30am Treasury Refunding announcement (an update on Treasury auction amounts for the coming fiscal quarter).

Amounts were left unchanged, and there was no specific mention of 50yr bonds (something Mnuchin has said Treasury is looking into).  Traders may have taken some heart in the fact that auction amounts didn't increase, but Treasury's press release said that things would likely change after the Fed begins trimming its balance sheet.  Yields began climbing after a brief initial rally.  

Once 10yr yields hit 2.28%, a big buying order came through the Treasury futures complex.  One minute later, buyer loaded up on nearly 9 times as many bonds, sending yields decisively lower and setting the tone for the rest of the morning.  Bonds stopped short of breaking their consolidation range, however, and ended up slowly drifting back up toward the 2.28% level by the end of the business day.


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
103-03 : -0-02
Treasuries
10 YR
2.2710 : +0.0200
Pricing as of 8/2/17 5:13PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:17AM  :  One Trade Caused a 180 in Bonds
8:39AM  :  Treasury Auctions to Remain Unchanged in Q3
8:27AM  :  Very Little Impact From ADP Payroll Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "yep, and it folds the laundry and walks the dog"
Hugh W. Page  :  "With auto postings of the newsletter to Facebook, Twitter, and Linked In as well!"
Ted Rood  :  "It's GREAT, and FREE"
Ted Rood  :  "Are you using Market Newsletter portion of MBS Live?"
Matthew Graham  :  "3.0 importance begin ramping up as rates dip below 3.875%. Not irrelevant even now, but 3.5 still most relevant."
Victor Burek  :  "this site will always default to current coupon"
Dan Frey  :  "Quick question: where does one go to determine which coupon to track to watch MBS movement?"