Bonds continued to sell-off again today--this time slightly more aggressively than yesterday.  Yes, the current spike in yields/rates is frustrating, but it's par for the course when it comes to bond market corrections.  September is notorious for going against the summertime grain in the short-term, but not for single-handedly altering the longer-term trend.  In short, this too shall pass, although we don't know exactly when or exactly how big the damage will be when that time comes.  

We can, however, throw out a few potential flashpoints in the near future: the ECB announcement on Thursday and the Fed next Wednesday.  Even then, there is a technical limit to how much higher rates will go without actual economic fundamentals being part of the move.  In other words, the market might not love the ECB's or Fed's messages (part of the correction may be in preparation for such things), but there's only so much damage the monetary policy trading reaction will be able to do absent an unexpected improvement in global econ data.

If you missed them (especially if you've felt totally surprised by the pace of this move higher), here are a few recent links that may help:

Last week's warning that the correction was beginning

Yesterday's confirmation that the correction was underway


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 3.0
101-08 : -0-12
Treasuries
10 YR
1.7440 : +0.1220
Pricing as of 9/10/19 6:13PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:05PM  :  ALERT ISSUED: Still Not Out of The Woods on Reprice Risk
11:57AM  :  ALERT ISSUED: Reprice Risk Increases After Trade Headlines
10:46AM  :  ALERT ISSUED: Negative Reprice Risk Increasing

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Justin Perry  :  "I'm glass half full. This is a welcome correction. Pipeline relief and get some fence sitters to lock. Stay here for a few weeks and then back to wanting more loans."
Hugh W. Page  :  "Boy I don't think I've seen this many reprices worse in one day in quite awhile"
Timothy Baron  :  "Lets just get to 1.74 and bounce already."
Matthew Graham  :  "There was a trade headline earlier, but in general, this is "the correction" that everyone was looking for 3 weeks ago."
David Rudnick  :  "is there any "headline" or just this is how the markets feel right now"
Matthew Graham  :  "1.748 (minor), 1.793 (major)"
Scott Valins  :  "whats the next pivot point?"
Andy Pada, Jr.  :  "i'm not really enjoying this red"

Economic Calendar
Time Event Period Actual Forecast Prior
Tuesday, Sep 10
13:00 3-Yr Note Auction (bl) 38
Wednesday, Sep 11
7:00 MBA Purchase Index w/e 242.6
7:00 Mortgage Refinance Index w/e 2367.2
8:30 Core Producer Prices YY (%)* Aug 2.2 2.1
10:00 Wholesale inventories mm (%) Jul 0.2 0.2
13:00 10-yr Note Auction (bl)* 24