The break outside what we'll call the "Springtime Consolidation" for bonds started taking shape as early as last week.  On Thursday and Friday, yields hugged the upper boundaries of that trend, simultaneously shying away from the sort of positive bounce that would typically suggest the trend's continuation.  No matter!  Perhaps they just needed to think things over for the weekend  and things would look different on Monday.

Nope!  In fact, bonds weakened on Monday, which just about put the nail in the coffin of the Springtime Trend, but Tuesday's resilience raised doubts.  By yesterday, however, we probably had our final answer with the big break above 2.835% and even a modest break above 2.86% in 10yr yields.  

Today's overnight weakness was plenty to put a period at the end of Springtime Consolidation's story.  As the morning progressed, the period turned into an exclamation point.  Yields ultimately hit 2.934% before settling back down to 2.91+ to drift into to close.  From here, we're watching early February highs closely.

As for the story behind the weakness, it was discussed in extreme detail in today's MBS Huddle.  

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.5
99-14 : -0-07
10 YR
2.9117 : +0.0447
Pricing as of 4/19/18 5:02PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:59AM  :  ALERT ISSUED: Negative Reprices Now Likely
11:22AM  :  ALERT ISSUED: Selling Getting Serious; Early Negative Reprice Risk
8:47AM  :  ALERT ISSUED: Bonds Extend Overnight Weakness After Econ Data/Fed Comment

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "Reason being, strong demand is good, as always, but with TIPS it's also suggestive of more inflation"
Matthew Graham  :  "More of a housekeeping item for bond market, and hard to glean a takeaway"
Matthew Graham  :  "TIPS auction"
Jude Bridwell  :  "I guess 5 yr auction wasn't any sort of potential market mover?"