Today's trading session was far less eventful than anything else seen in the past few weeks, both in terms of movement and volume.  Although Treasury yields were higher, most of the increase came in the overnight session, and additional volatility was minimal throughout the day. 

By the time we get to MBS (as opposed to Treasuries), things were even more calm.  Fannie 4.0 coupons were almost perfectly unchanged compared to 10yr Treasuries which lost more than a quarter of a point in price.  

At least some of the pressure may have been due to the fact that it's a 3/10/30yr auction week with today being 10's.  It's not uncommon for bonds to lose a bit of ground heading into auctions  Today was no exception with most of the losses coming BEFORE the somewhat weak 10yr auction.

The morning's economic data was also a non-event with CPI coming in right on the screws.  

In the bigger picture, we're in the midst of a consolidation following the recently strong rally and the Fed Announcement coming up next Wednesday.  Bonds may or may not take a 'lead-off' ahead of the Fed, but for the most part, that's the event most likely to dictate the next wave of momentum.


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
101-00 : -0-01
Treasuries
10 YR
2.9100 : +0.0040
Pricing as of 12/12/18 7:01PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:27PM  :  Bonds Take Weaker 10yr Auction Mostly In Stride
8:49AM  :  Bonds Hold Modest Overnight Losses After CPI

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Hugh W. Page  :  "Interesting discussion on Bloomberg this morning from an economist who showed a historical chart that once the Fed stops hiking cycle the average number of months until the 1st Rate CUT is only 5."
Matthew Graham  :  "RTRS - PRIMARY DEALERS TAKE 26.14 PCT OF U.S. 9-YEAR 11-MONTH NOTES SALE, DIRECT 10.76 PCT AND INDIRECT 63.11 PCT"
Matthew Graham  :  "RTRS - HIGH YIELD AT LATEST 9-YR 11-MO NOTE SALE WAS LESS THAN 1 BASIS POINT ABOVE ITS 1 P.M. WHEN-ISSUED LEVEL - REUTERS DATA"
Matthew Graham  :  "RTRS - U.S. 9-YR 11-MO NOTES BID-TO-COVER RATIO 2.35, NON-COMP BIDS $12.24 MLN"
Matthew Graham  :  "RTRS - U.S. SELLS $24 BLN 9-YR 11-MO NOTES AT HIGH YIELD 2.915 PCT, AWARDS 13.03 PCT OF BIDS AT HIGH"

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Dec 12
8:30 Core CPI Year/Year (%)* Nov +2.2 2.2 2.1
8:30 CPI mm, sa (%)* Nov 0.0 0.0 0.3
Thursday, Dec 13
8:30 Export prices mm (%)* Nov -0.1 0.4
8:30 Import prices mm (%)* Nov -0.9 0.5
8:30 Jobless Claims (k) w/e 225 231
13:00 30-Yr Bond Auction (bl)* 16