European Central Bank (ECB) president Mario Draghi is getting very good at telling the world that the EU economy is in dire straits, but not to worry and that everything should be fine about 6 months from now.  He's been saying that for roughly 5 years and while the internet laments the inconsistency, markets continue to respond.  

In today's installment, Draghi mentioned that other central bankers are warming up to the idea of the European economy cooling down, and that inflation should continue to fall through September 2019.  There were other downbeat components to the speech and press conference, but despite all that, there was still the conclusion that the economic expansion would continue.  

Markets focused more on the downbeat stuff--especially European bond markets, which spilled over to the US trading session and helped Treasury yields move lower.  Tepid US inflation data stood aside for that process in the morning hours and a stronger 10yr Treasury auction helped solidify the gains in the afternoon.

Oddly enough, the Fed Minutes were net-negative for bonds, but so wholly uninspiring that the negativity was well contained inside the days preexisting rally.  10yr yields ended down more than 3bps and MBS posted a quarter point gain.


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 3.5
101-05 : +0-06
Treasuries
10 YR
2.4700 : -0.0290
Pricing as of 4/10/19 5:03PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:24PM  :  Fed Minutes Were Less Interesting Than The Announcement Suggested
1:16PM  :  Strong 10yr Auction Reinforces Gains
8:50AM  :  Bonds Not Willing to Make Big Move After CPI and Draghi

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "boring minutes release underlying a surprisingly dovish March 20th announcement. No new news here. If anything, it's more upbeat than the announcement would suggest"
Matthew Graham  :  "ho hum"
Matthew Graham  :  "SEVERAL POLICYMAKERS SAID THE FED'S CHARACTERIZATION OF ITS POLICY AS 'PATIENT' WOULD NEED TO BE REVIEWED REGULARLY -MINUTES"
Matthew Graham  :  "SEVERAL POLICYMAKERS PREFERRED TO STABILIZE AVERAGE LEVEL OF RESERVES BY RESUMING PURCHASES OF TREASURIES SOON AFTER END OF FED'S BALANCE SHEET RUNOFF -MINUTES"
Matthew Graham  :  "MAJORITY OF POLICYMAKERS SAID FED'S 'PATIENT' APPROACH ON RATES NEEDED GIVEN UNCERTAINTIES, INCLUDING THOSE AROUND GLOBAL ECONOMY AND FINANCIAL DEVELOPMENTS -MINUTES"
Timothy Baron  :  "Nice move today. C'mon MBS, push through!"

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Apr 10
7:00 MBA Purchase Index w/e 278.1 276.6
7:00 Mortgage Refinance Index w/e 1582.6 1786.0
8:30 Core CPI (Annual) (%)* Mar +2.0 2.1 2.1
8:30 Consumer Price Index (CPI) (%)* Mar +0.4 0.3 0.2
8:36 Mario Draghi Press Conference *
13:00 10-yr Note Auction (bl)* 24