Bonds began the day in weaker territory partly due to a correction from yesterday's strong run in the afternoon, and partly due to stronger economic data in Europe.  Domestic economic data was stronger too, with Retail Sales coming in at 0.8 versus a median forecast of 0.3.  The previous reading was also revised up to 0.5 from 0.2.

In the past, bonds might have cared more about that sort of data, but at present, there are bigger fish to fry.  After yesterday's scheduled detour for inflation and the Fed (2 things that were expected to move markets despite NOT being "the tax bill"), it was back to focusing on the tax bill today.  

Senators Lee and Rubio threatened to vote "no" on the tax bill unless certain changes were made regarding child tax credit refunds.  The release of that news marked an obvious shift in the tone of trading for stocks, and--to a lesser extent--bond yields.  Both moved lower together heading into the afternoon.  Stocks ended up closing much lower on the day whereas bonds were merely able to get back in line with yesterday's stronger 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
102-25 : -0-01
Treasuries
10 YR
2.3511 : +0.0021
Pricing as of 12/14/17 4:54PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:21AM  :  ALERT ISSUED: Slight Increase in Negative Reprice Risk For Early/Aggressive Lenders
8:49AM  :  Retail Sales Worth Some Weakness, But Now it's Draghi

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "I'd assume so AP. We're rallying this afternoon because of hurdles"
Andy Pada, Jr.  :  "we rally big on no tax bill?"
Andy Pada, Jr.  :  "a deal probably gets done, but if Lee and Rubio are a "no." and Corker is a probable "no." And McCain may not be there to vote, Republicans don't have the vote"
Matthew Graham  :  ""no, unless...""
Andy Pada, Jr.  :  "Is Sen. Lee a "no" as well?"
Matthew Graham  :  "RTRS - REPUBLICAN SENATOR RUBIO WILL VOTE 'NO' ON TAX BILL UNLESS TAX CREDIT FOR WORKING POOR IS EXPANDED - WASHINGTON POST, CITING REPUBLICAN SOURCE"
Matthew Graham  :  "RTRS - LEE AND REPUBLICAN SENATOR RUBIO WANT TO MAKE MORE OF CHILD TAX CREDIT REFUNDABLE-AIDE"
Matthew Graham  :  "RTRS - U.S. REPUBLICAN SENATOR LEE IS UNDECIDED ON WHETHER TO SUPPORT TAX LEGISLATION; SEEKS CHANGES TO CHILD TAX CREDIT-AIDE"
Matthew Graham  :  "not a real sell-off. look at Treasuries. (or read this: Why Did MBS Prices Just Inexplicably Tank? )"
Kunal Khanna  :  "ok we are selling off now"