If you're operating under the assumption that the prevailing momentum in bond markets is sideways for the time being, today offered few surprises.  In fact, it barely offered anything interesting at all.

The only significant item on the calendar was the 10yr Treasury auction.  These can occasionally move markets, but when that happens, they typically serve to suggest an "adjustment" to prevailing levels as opposed to the jumping-off point for new momentum. 

Today's reaction was by the book in that regard.  A moderately weaker auction resulted in just enough weakness to be noticed.  That said, it wasn't enough to push bonds into negative territory on the day.  In the bigger picture, it left today looking like one of the narrowest trading ranges of the year, and at levels most central to the recent range.

2019-2-6 close


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
102-04 : +0-01
Treasuries
10 YR
2.6950 : -0.0090
Pricing as of 2/6/19 3:19PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:11PM  :  10yr Auction: Neither Stellar Nor Terrible
11:24AM  :  Heads-Up: MBS 1/8th Point Off Best Levels
10:26AM  :  Holding in Slightly Stronger Territory

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Travis Waters  :  "It is the last item listed on the website"
Travis Waters  :  "Paul, here is the Fannie guide: https://www.fanniemae.com/content/guide/selling/b3/6/06.html"
Spencer Packer  :  "Paul, my understanding is that you can only do that on Freddie."
Jon Leslie  :  "PO yes if you have non contingent contract"
Paul Olexa II  :  "Question. Doing a purchase for a client. Conventional Fannie/Freddie loan. Client is purchasing new home in FL and selling current home in NJ. Purchase of new home in FL will occur roughly 2 weeks prior to close of NJ home for sale. Is it possible to omit the NJ mortgage payment from liabilities? Borrower has fully executed contract and a bonafide buyer for the property. I do few purchases but am doubtful this obligation can be omitted w/o the consumation of the sale of the NJ home but borrower has stated other lenders have said this permissible. I’m searching through Fannie/Freddie seller guidelines now but struggling to find this exact scenario there and hopeful someone here has experience with this. Thanks!"

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Feb 06
7:00 MBA Purchase Index w/e 253.1 266.2
7:00 Mortgage Refinance Index w/e 1053.4 1049.9
Thursday, Feb 07
8:30 Jobless Claims (k) w/e 221 253
13:00 30-Yr Bond Auction (bl)* 19