Traders' eyes were far more burdened than their fingers (which push the "trade" button) today.  There was a ton of info to take in regarding the GOP's tax bill, but not much trading to be done in response.  While it was the biggest event of the day when first released this morning, the initial response was a quick "risk-off" move that favored bonds at the expense of stocks.  The latter bounced back within 2 hours and bonds simply held sideways for the rest of the day.

Incidentally, that means bonds held sideways right through the official nomination of Jerome Powell as the next Fed Chair.  We knew there was a decent chance traders had already priced-in the Powell news.  Not only was that indeed the case, but markets were so exhausted (trying to make sense of the tax headlines) by the time the news came out that there wasn't much conviction left on either side of the trade.

Volumes were the 2nd lowest of the week, and right in line with recent moving averages.  Is this some sort of hesitation ahead of tomorrow's NFP?  Perhaps, but probably not.  Markets haven't been especially interested in NFP for a while.  The only tricky exception would be that NFP can still act as a marker on the calendar for new trades to be made.  


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
102-28 : +0-03
Treasuries
10 YR
2.3487 : -0.0273
Pricing as of 11/2/17 6:45PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:12PM  :  Little-Changed After Confirmation of Powell Nomination
12:33PM  :  ALERT ISSUED: Bonds Off Best Levels; Reprice Risk Muted For Now
10:12AM  :  Volume Spiking, Stocks Tanking, Bonds Rallying Now
10:01AM  :  Bonds Holding Steady As Tax Plan Details Roll Out

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "that was fast"
Matthew Graham  :  "RTRS - U.S. HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN BRADY SAYS HE WOULD BE WILLING TO RAISE CAP ON MORTGAGE INTEREST DEDUCTION IF OFFSETS CAN BE FOUND -FOX NEWS INTERVIEW"
Hugh W. Page  :  ""Under the provision, a taxpayer would have to own and use a home as the taxpayer’s principal residence for five out of the previous eight years to qualify for the exclusion. In addition, the taxpayer would be able to use the exclusion only once every five years. The exclusion would be phased out by one dollar for every dollar by which a taxpayer’s adjusted gross income exceeds $500,000 ($250,000 for single filers). The provision would be effective for sales and exchanges after 2017.""
Hugh W. Page  :  "And elimination of Second Homes interest deduction as well as deductible HELOC interest going away."
Hugh W. Page  :  "Interest deduction change in my mind is not that big of a deal. Change in what constitutes taxable capital gain from a sale is a bigger one."
Hugh W. Page  :  "Some pretty significant changes that affect housing in this tax bill."
Oliver Orlicki  :  "Tight range for an action packed day so far"
Matthew Graham  :  "RTRS - TRUMP ANNOUNCES DECISION TO NOMINATE FED GOVERNOR POWELL AS NEXT CHAIR OF FEDERAL RESERVE"
Matthew Graham  :  "RTRS - FED GOVERNOR POWELL APPEARS WITH PRESIDENT TRUMP AT EVENT TO ANNOUNCE NEXT FED CHAIR"