Bond markets began the day roughly unchanged after initially improving in the overnight session.  Domestic hours saw 10yr yields make 2 attempts to break higher with both thwarted by 2.345%.  Just after the 2nd bounce, the first leaks started coming out regarding the Senate tax plan.  Markets responded with a "risk-off" trade (stock prices and bond yields both moved lower).  

Bonds would get one final boost from a relatively strong 30yr bond auction.  The ensuing move brought 10yr yields as low as 2.315, but that's where the good news ends.  Broader financial markets were already in the process of trading the tax reform news BACK in a "risk-on" direction (stock prices and bond yields higher).  That meant bonds had some catching up to do. Longer-term yields rose steadily throughout the afternoon.  Both MBS and Treasuries ended the day in negative territory near their weakest levels.


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
2.3398 : +0.0228
Pricing as of 11/9/17 4:48PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:06PM  :  Full List of Senate Tax Plan Bullet Points
11:58AM  :  Bonds Back Into Positive Territory on Tax Headlines
9:01AM  :  Bonds Weaker Overnight on ECB QE Unwind Trading, Curve Trades

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Brent Borcherding  :  "The only way you start building $100K homes is when you run out of buyers for the $800K ones. Hasn't happened yet."
Sung Kim  :  "why build 100k home and make 20k when you can build a 800k home and make 200k?"
Timothy Baron  :  "And the starter homes we need are not profitable to build."
Sung Kim  :  "two primary things driving value - 1) more demand due to a substantially improved economy; 2) lack of supply due a number of factors not least of which being institutional investors owning all the starter homes"