Fed Chair Powell fielded questions from the Senate Banking Committee today as a part of the 2-day semi-annual congressional testimony often referred to as the Humphrey Hawkins address.  These testimonies have plenty of street cred based on past examples where they've caused big market movements.  The difference between then and now is that markets don't have much to learn from the Fed.  In other words, there's not much room for off-the-radar surprises.

Today's market reaction bore that out.  A few bond bulls were positioned for Powell to say something dovish.  When he didn't, there was a quick, shallow, negative reaction, followed by a sideways grind that kept longer-term bond near unchanged levels.  Shorter-term bonds continued to lose ground, because that's what shorter-term bonds do when the Fed remains steadfast in their determination to hike the shortest-term rate.  Even this wasn't much to write home about.

The lion's share of the day's movement was seen in the stock market--so much so that we can safely assume some "asset allocation" pressure on Treasuries.  More simply put, some of the early Treasury weakness can be chalked up to the notion of "selling bonds to buy stocks."  By the end of the day, bonds were still very much inside the same range that's been intact since June 27th.  

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
101-30 : +0-00
10 YR
2.8600 : +0.0040
Pricing as of 7/17/18 5:17PMEST

Today's Reprice Alerts and Updates
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10:12AM  :  Bonds Weaker As Powell Testimony Begins

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
E S  :  "Just the opposite GL...I think they are not allowing EAD Cards classified under C-33 only which appears to be for DACA individuals only...someone who works with Caliber could confirm"
Gavin Luckman  :  "crazy...So even if they have an EAD under category other than C-33, they will not accept? Conv and Gov?"
Ira Selwin  :  "I know this was discussed previously - but see the latest from Caliber - All Products - DACA - The USCIS is no longer renewing Employment Authorization Document (EAD) cards that are classified under Category C-33 (Deferred Action for Childhood Arrivals - DACA); therefore, effective immediately, Caliber is no longer accepting applications for borrowers with a DACA EAD on any product."