Bond traders took a break from their newfound hobby of the past 5 business days: relentlessly selling bonds.  Maybe they want to branch out and try new things.  Maybe they were just a little tired of all the selling.  Or maybe they had hit their pre-ECB selling goals just a bit early.

Tomorrow's European Central Bank (ECB) announcement is definitely worth considering as a potential flashpoint.  With heavy expectations for significant stimulus and rate cut overtures on multiple occasions since the last meeting, the sudden ramp up in ECB-related doubts (i.e. will they cut as much as we thought?  Will they announce any new bond buying)  may indeed have the bond market on edge.  To whatever extent that's the case, we'll know it tomorrow, and today's sideways grind would make even more sense. To whatever extent that's not the case, we get to do the same thing all over again next week with the Fed.  

If there was something to be gleaned from the lack of movement in Treasuries today, I'd argue that it was mildly bearish.  Yes, it's great to see yields avoid making another big jump higher, but European bond trading and a reasonably average 10yr Treasury auction both provided enough justification for Treasuries to rally a bit if they had any inclination to do so.  Instead, Treasuries seemed almost careful to avoid rallying back below initial overnight lows at 1.71%.  They ended the day at 1.745% while Fannie 3.0 MBS managed to gain nearly an eighth of a point.


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 : +0-03
Treasuries
10 YR
1.7450 : +0.0430
Pricing as of 9/11/19 5:29PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:39PM  :  No Major Reaction to 10yr Auction
9:16AM  :  ALERT ISSUED: MBS Already Down Enough For Reprice Risk

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Andy Pada, Jr.  :  "bring it home tomorrow Draghi"

Economic Calendar
Time Event Period Actual Forecast Prior
Wednesday, Sep 11
7:00 MBA Purchase Index w/e 253.5 242.6
7:00 Mortgage Refinance Index w/e 2377.5 2367.2
8:30 Core Producer Prices YY (%)* Aug +2.3 2.2 2.1
10:00 Wholesale inventories mm (%) Jul 0.2 0.2 0.2
13:00 10-yr Note Auction (bl)* 24
Thursday, Sep 12
7:45 European Central Bank Announcement *
8:30 Core CPI (Annual) (%)* Aug 2.3 2.2
8:30 Jobless Claims (k) w/e 215 217
8:30 European Central Bank Press Conference *
13:00 30-Yr Bond Auction (bl)* 16