The past two sessions have been fairly nondescript in the bigger picture.   Both have traversed almost exactly the same trading range.  Both have exhibited very little direct attachment to news or events.  And neither have offered up a meaningful attempt to break out of recently established ranges.  Incidentally, the same patterns are playing out in multiple markets beyond the bond market.

At least for bonds, today's spinning wheel of indecisiveness stopped on luckier numbers.  In other words, the trading range was the same as yesterday, but we closed near the best levels of that range.  I'd view this as a factor of random timing before I'd jump to the conclusion that bonds are about to rally.  While the latter is certainly possible, there's a lot riding on tomorrow's CPI data as well as the tax bill headlines set to come out in the 2nd half of the week.  

As for today, Fannie 3.5 MBS gained an eighth of a point and Treasuries outperformed, with 10yr yields gaining more than a quarter point in price, and falling more than 3bps in yield.  Credit the latter to some relief after working through 2 big days of corporate bond issuance, as well as a rebound in the yield curve trading that had been contributing to recent volatility (discussed in greater detail for MBS Live members in the attached video).


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
102-19 : +0-04
Treasuries
10 YR
2.3753 : -0.0247
Pricing as of 11/14/17 4:45PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:22AM  :  Bonds Improve After JP Morgan CIO Comments
8:55AM  :  Slightly Weaker After PPI Data

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "the ability to pass through increased costs of input is tough now, the finished product/cost is going to be CPI. based on all the info were are seeing re: inflation, i would venture to guess that it is going to come in .2 higher"
Matthew Graham  :  "Yeah, we've seen plenty of divergences, and plenty of the opposite. I wouldn't stray too far from a 50/50 outlook."
Hugh W. Page  :  "Well I guess they're fairly different in what they measure so who knows."
Hugh W. Page  :  "What's the likelihood we get weak Core CPI data tomorrow with this stronger PPI print this morning? Dec hike is pretty close to a sure thing isn't it?"
Matthew Graham  :  "places additional importance on tomorrow morning's numbers"
Matthew Graham  :  "RTRS - FED'S BOSTIC: WILL WATCH NEXT FEW INFLATION READINGS CLOSELY FOR SIGNS OF REBOUND"
Matthew Graham  :  "RTRS - FED'S BOSTIC: APPROPRIATE TO RAISE U.S. RATES GRADUALLY OVER NEXT COUPLE YEARS"