With today's modest gains, bond markets did exactly what they need to in order to keep the medium term momentum technicals perfectly flat (that flatness was discussed in the Day Ahead, if you'd like to read more about it).  That commentary mentioned bonds being "done for the holidays" in the title because the following week tends to be anyone's guess when it comes go market movement. 

We've seen Thanksgiving weeks that have been awesome, ugly, and perfectly flat.  In almost all cases, the motivation for each of those movements is nowhere to be found.  It's a random walk based on which traders are trading and whether or not they are actually trying to accomplish something on a week known for it's light liquidity.

As for today, it started out with yields and MBS prices in roughly the same spot as yesterday's close.  Bonds began to improve after the Housing Starts data (but not because of it).  After all, that wouldn't make much sense considering the data was stronger than expected. 

Instead, it was simply one big trade in the Treasury futures complex that provided inspiration for other traders to follow suit.  No one but the trader who made the trade knows why it was made, though "weakness in European markets" is a fair enough guess considering European yields and stock prices were falling at the time.

After Europe closed, US bond markets traded mostly sideways for the rest of the day, ultimately maintaining a 3bp improvement in 10yr yields and a 3/32nds gain in Fannie 3.5 MBS.


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
102-23 : +0-03
Treasuries
10 YR
2.3452 : -0.0158
Pricing as of 11/17/17 5:28PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:03PM  :  Bonds at Weakest Levels in Several Hours; Reprice Risk Considerations
10:57AM  :  Big Block Trade Sets Positive Tone, but Range Resistance Remains

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matt Hodges  :  "Thoughts on either Freddie or Fannie going to 50% DTI on cashout NOO?"
aaron meyer  :  "Bet we don't until Monday"
B C  :  "should be seeing some reprices any minute now"