Bonds struggled to find inspiration for the first few hours of the domestic session, but it was soon in ample supply thanks to Brexit-related headlines (like this one).  The result was a broad-based risk-off move that saw bonds move back to their strongest recent levels.  

Notably, though, that's as far as bonds got.  Specifically 10yr Treasury yields were once again blocked by a floor in the mid 2.82% range.  This has been an on-again off-again pivot point of high significance since late May, 2018.  

Sometimes, bonds approach such pivot points with the intention of breaking through.  That seems like a lot to ask of this rally, given the ground that's already been covered.  At the very least, it seems like we'll need help from economic data in the rest of the week, and at the very least, from next week's Fed Announcement.  The tricky part there is that the Fed announcement could also fall short of satisfying bonds' bullish desires and paradoxically act as a catalyst for an even bigger reversal.  

Either way, all we know today is that bond yields bounced at the same old floor, and relative to other 'risk-off' metrics, they didn't look as eager to rally.  All things being equal, this suggests a bit more caution ahead in what has otherwise been a fairly optimistic winning streak.


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 4.0
101-07 : -0-02
Treasuries
10 YR
2.8630 : +0.0130
Pricing as of 12/10/18 5:44PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
12:43PM  :  ALERT ISSUED: Brexit-Driven Rally Unwinding; Risks Increasing for Some Lenders
12:20PM  :  Here's How Possible Fannie/Freddie Boss Thinks
11:28AM  :  Brexit Drama Helping Bonds to Best Levels

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ted Rood  :  "2.83 seems to be solid resistance for treasury yields"

Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, Dec 11
8:30 Producer Prices (%) Nov 0.0 0.6
8:30 Core Producer Prices YY (%)* Nov 2.5 2.6