It's been a mostly good morning for bond markets.  The overnight session saw modest gains during European hours, and Treasuries even managed to hold those gains while European bonds sold-off.  That's not a common occurrence and especially not on a day with a Treasury auction on tap.

The outperformance probably would have faded in the domestic session if not for the exceptionally weak Retail Sales numbers.  That gave Treasuries and MBS a solid boost, but both were only willing to bounce briefly at resistance levels (101-16 in Fannie 3.0s and 2.05 in 10yr yields).

Since then, trading levels have drifted back toward support levels (2.096 in 10yr yields and 101-08 in Fannie 3.0s).  The 30yr auction will likely determine whether those are held or broken.


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
101-10 : +0-05
FNMA 3.5
104-10 : +0-03
FNMA 4.0
106-15 : +0-01
Treasuries
2 YR
0.6640 : -0.0200
10 YR
2.0800 : -0.0290
30 YR
2.6610 : -0.0240
Pricing as of 3/12/15 12:54PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:56AM  :  ALERT ISSUED: Once in a Blue Moon, We See a Negative Reprice in This Situation
9:16AM  :  Stronger Overnight and After Data; US Bonds' Turn to Outperform!

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
John McClellan  :  "looks like we have just about gained all the losses from Friday...at the least very close to that."
Matthew Graham  :  "RTRS- U.S. FEB PETROLEUM IMPORT PRICES +8.1 PCT VS JAN -20.6 PCT"
John Tassios  :  "Import prices surprised me. MG, is that due to oil going up a bit in price recently? can you tell from the details? "
Barry Moore  :  "Love it.....Look at all those pretty green numbers"
Matthew Graham  :  "RTRS - US FEB RETAIL SALES EX-AUTOS/GAS/BUILDING MATERIALS/FOOD SERVICES UNCHANGED (CONS +0.4 PCT) VS JAN -0.1 PCT (PREV +0.1 PCT)"
Matthew Graham  :  "RTRS - US FEB RETAIL SALES EX-AUTOS -0.1 PCT (CONS +0.5 PCT) VS JAN -1.1 PCT (PREV -0.9 PCT)"
Victor Burek  :  "another neg. retail sales"
Matthew Graham  :  "RTRS- US FEB RETAIL SALES -0.6 PCT (CONSENSUS +0.3 PCT) VS JAN -0.8 PCT (PREV -0.8 PCT)"