For the 2nd straight day, trading levels in bond markets held inside a narrow range--far narrower than that seen on any given day last week, let alone the entire week.  This could be incidental or it could be in anticipation of some future event.

The leading candidates as far as future events would be tomorrow's release of the Fed Minutes at 2pm as well as the first serious Treasury auction of the week (5yr Notes at 1pm).  Given that the bigger of the two events hits an hour later, that's where we'd be looking for intraday risk--at least it would be if we were in a more normal environment.

As it stands, the bond market is exceptionally well availed of the Fed's plans and it's unlikely that new information is going to be gleaned from this or any near-term release.  The only exception would be if an unexpected shift in tone begins to materialize, and I think the Fed is smart enough to know they shouldn't discuss such things until economic data gives them more justification to do so.

All that to say we really are "sideways and waiting for ____" again, where the blank space could be a number of things, including the actual move away from "sideways" itself.  Keep in mind that Friday is a half day and markets are closed on Monday, so this week's indecision could merely be a byproduct of a pre-holiday week (i.e. tuned-out traders, putting off bigger decisions until next week or later).

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 4.0
101-07 : -0-01
10 YR
3.0615 : -0.0035
Pricing as of 5/22/18 4:52PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:24AM  :  Not Much Happening So Far; Europe Setting Tone

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matt Hodges  :  "from my experience, you ask the borrower to come to your office...dial the IRS and wait 30-60 minutes. They ask the borrower identifying questions, then ask you to confirm you are at the fax machine. Once the IRS does this, fax starts within the minute."
John Toepfer  :  "Borrower can go to IRS office and request payoff which may be issued on site, but most likely mailed and received in 4-5 days. Title can also request and it'll take about -6 weeks. Haven't heard about fax options."
Andy Pada, Jr.  :  "yep non-QM"
Dan Draitser  :  "aka non-QM?"
Andy Pada, Jr.  :  "felt like the secondary conference was all about alt QM"
Dan Draitser  :  "Does the IRS fax pay offs if you do a conference call with the borrower?"