Bonds began the day in moderately weaker territory and continued to lose ground through the early afternoon.  After consolidating in extreme fashion over the past 2 weeks, stocks finally popped higher.  This is one of the few cases where I'm happy to give the stock movement some credit for the modest reaction in bonds.  It was right about that time that S&P futures were breaking out of their consolidation range that a big sale hit the CME in 10yr Treasury Futures, resulting in the weakest move of the day heading into 11:30am.

Bonds began to recover on their own, and for no great reason other than technical ceilings were hit, the EU bond market closed, and $/yen reversed course.  The 3yr Treasury auction added to the gains with an exceptionally strong showing, but the reaction lasted a mere 10 minutes before sellers pounced on the opportunity to get out at slightly better prices.

Yields were drifting back toward the highs of the day when geopolitical headlines took a bite out of stocks (Trump threatening North Korea with "fire and fury."  Bonds improved, but remained in weaker territory on the 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
103-07 : -0-01
Treasuries
10 YR
2.2619 : +0.0049
Pricing as of 8/8/17 7:14PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:57PM  :  Bonds Pushing Back as Corporate Deals are Priced, European Markets Close
11:08AM  :  ALERT ISSUED: Negative Reprice Risk Increasing
9:18AM  :  ALERT ISSUED: Big Drop in MBS Just Now; Oranges and Scurvy

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Christopher Stevens  :  "no flight to safety though"
Matthew Graham  :  "Behind the stock weakness, apparently"
Matthew Graham  :  "TRUMP WARNS N. KOREA A U.S. RESPONSE WOULD BE `FIRE AND FURY THE LIKES OF WHICH THE WORLD HAS NEVER SEEN'"
Matthew Graham  :  ""A""
Matthew Graham  :  "RTRS - PRIMARY DEALERS TAKE 25.79 PCT OF U.S. 3-YEAR NOTES SALE, DIRECT 10.16 PCT AND INDIRECT 64.05 PCT"
Matthew Graham  :  "RTRS - U.S. 3-YEAR NOTES BID-TO-COVER RATIO 3.13, NON-COMP BIDS $49.82 MLN"
Matthew Graham  :  "RTRS - U.S. SELLS $24 BLN 3-YEAR NOTES AT HIGH YIELD 1.520 PCT, AWARDS 20.36 PCT OF BIDS AT HIGH"
Matthew Graham  :  "current when-issued yield = 1.529"
Matthew Graham  :  "Recent average bid-to-cover 2.87x, Indirect bidding: 54.6, and average beat/miss = 0.00 vs 1pm When-Issued yield."
Matthew Graham  :  "Some auction stats follow. They will be confusing unless you're familiar with Treasury Auction Jargon, Definition, and Significance "
Rob Clark  :  "Guess the markets are not listening to Gundlach.."