Bonds ended the day in weaker territory with 10yr yields rising roughly 3bps and Fannie 4.0 MBS losing nearly a quarter of a point.

Much like yesterday, bonds lost most of their ground in the overnight session.  Much like yesterday, an absence of drama in equities markets gave way to bond losses.  Taken together with the last 4 trading sessions, bonds look as though they're bouncing at 10yr yield levels near 3.06.  In that sense, today's modest weakness offers another bit of confirmation for that bounce.  The counterpoint is that yields seemed similarly unwilling to break up above 3.16% today.  

The general unwillingness to extend a rally or to spike to higher yields is consistent with indecision.  Perhaps bonds are waiting for input from the upcoming economic data or from next week's election results.  The other possibility is that traders' hands were simply tied due to month-end trading requirements (i.e. certain traders have to hold a certain mix of bonds by the end of the day/month).  In that case, we could see more abrupt movement in the morning , even if we don't get a surprise in the econ data.  

Even then, with NFP Friday and elections next week, it would be more of a surprise to see bonds move outside recent highs/lows quite that soon.

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
99-31 : -0-07
10 YR
3.1511 : +0.0421
Pricing as of 10/31/18 4:13PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
8:19AM  :  Bonds Weaker Overnight. Stronger ADP Not Helping

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
John Tassios  :  "Yellen says "rising deficit is unsustainable....""

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Oct 31
8:15 ADP National Employment (k)* Oct 227.0 189 230
9:45 Chicago PMI * Oct 58.4 60.0 60.4
Thursday, Nov 01
8:30 Jobless Claims (k) w/e 213 215
10:00 ISM Manufacturing PMI * Oct 59.0 59.8
10:00 ISM Mfg Prices Paid * Oct 65.0 66.9
10:00 Construction spending (%)* Sep 0.1 0.1