Bonds entered the domestic session feeling a bit down on their luck.  There was some general weakness early in the overnight session, but just before 8am, European Central Bank (ECB) sources were quoted (anonymously) as generally approving of the market's consensus for policy tightening.  Specifically, the sources didn't push back on the view that the ECB should stop buying bonds later this year or that it should execute its first rate hike of this cycle some time in 2019.

Granted, that wasn't huge news (after all, it was the market's "consensus" that the ECB sources were responding to in the first place), but it was enough of a development to leave 10yr yields several bps weaker to begin the day.  

Relief came from heavy losses in stocks which pulled bond yields lower  as investors sought safer havens.  Headlines focused on Facebook--something I only bring up to suggest a certain absence of permanence or fundamental significance behind this particular sell-off.  Bonds may agree with that cautious assessment as they broke away from stocks around noon and refused to move any lower in yield after 10yr Treasuries began edging into positive territory on the day.

Bonds then sold off modestly into the close with 10yr yields ending around 1bp higher and MBS down less than an eighth of a point.  Due to the timing of morning rate sheets, most lenders ended up repricing for the better with the late morning gains.  

In the bigger picture, all of the above fits nicely into the same old narrative of "consolidation ahead of Wednesday's FOMC events."


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
99-24 : -0-03
Treasuries
10 YR
2.8573 : +0.0093
Pricing as of 3/19/18 4:43PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:17PM  :  ALERT ISSUED: Reprice Considerations With MBS Well Off Highs
10:23AM  :  Bonds Pushing Back Against Overnight Weakness

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ted Rood  :  "Guess I picked the wrong week to put my life savings in Facebook and Uber stock."
Matthew Graham  :  "definitely in play"
aaron meyer  :  "Stock lever?"