Today was another good day for bond markets despite the fact that Treasury yields moved somewhat higher during the course of trading hours.  At least in today's case, bonds didn't require an injection of geopolitical drama in order to maintain their position in the low 2.2's (10yr yields).  This helps build an ongoing case that the September rate spike was merely a correction to a nice summertime rally and that both have now run their course.

With the 2-month rally and 2-week corrections having run their course, that leaves us waiting for the next move to become apparent.  Market participants figured there was a chance that a Yellen speech this afternoon could have served as the motivation, but bonds shrugged it off fairly quickly.

Earlier this morning, the economic data fell on deaf ears, though the reports (Consumer Confidence and New Home Sales) aren't the biggest market movers in the world in the first place.  Tomorrow brings bigger-ticket data in the form of Durable Goods at 8:30am ET, as well as a more relevant Treasury auction in the form of 5yr Notes at 1pm ET.


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
103-12 : +0-00
Treasuries
10 YR
2.2357 : +0.0157
Pricing as of 9/26/17 4:33PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:53PM  :  Bond Yields Back Below Pre-Yellen Levels
11:04AM  :  Weakest Levels After Trump Tax Comments, But Bouncing Already
10:10AM  :  Little-Changed After Econ Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "RTRS - FEDERAL FUNDS FUTURES IMPLY TRADERS SEE 78 PCT CHANCE FED RAISING RATES AT DEC 12-13 MEETING - CME GROUP'S FEDWATCH"
Matthew Graham  :  "RTRS - FED'S YELLEN SAYS EXPECTATION IS THAT INFLATION DATA IN COMING MONTHS WILL MOVE UP SOMEWHAT TOWARDS 2 PCT"
Justin T. Deaver  :  "traders currently have the chance of a Dec rate hike at 69.5%"
Jason Anker  :  "will Yellen's comments today push odds of a Dec hike lower?"
Sung Kim  :  "people are still seeing rate hikes in 2019, which would imply that this will be the longest expansion on record, i do believe. Hilsenrath, though, had a great article about bubbles this weekend, and i havent seen anything of value from him since his "call""
Sung Kim  :  "unfortunately, rates are still way too low. world is awash in liquidity and it is very evident if you are not just looking at public markets"
Christopher Stevens  :  "Bostic's comments are interesting on inflation (see news stream)"
Jason Anker  :  "market doesn't care I guess"
Dmitriy S  :  "CNBC - Yellen says Fed was wrong on employment and inflation, meaning easier policy ahead"
Sung Kim  :  "finally pundits are realizing that the investors that bought sfr to convert to rentals is affecting supply... will continue to persist to due the term/gov't subsidized financing they were able to secure from F&F"