The overnight and early domestic sessions were both strongly positive for bond markets.  A more substantive Greek debt impasse kicked off the overnight trading tone.  On several recent occasions, what's looked like meaningful Greek news instead turned out to be uneventful.  This time has been different to some extent.  Greek yields spiked enough to suggest correlation with falling yields in Germany and the US (true Greek drama tends to push Greek and German yields in opposite directions).

With that, Treasuries were already in stronger territory at the start of the domestic session.  Weaker economic data helped the gains extend.  First up was New York Fed's Empire State Manufacturing, which came in at -1.98 vs a +6.0 forecast.  This isn't usually a big market mover, but it was good enough for a boost this morning.  Same story with Industrial Production data at 9:15am, which stood at -0.2 vs a forecast of +0.2. 

The second dose of data-inspired gains were short-lived though.  The bounce was also led by European bond markets, suggesting the rally may have had just as much to do with the tradeflow momentum discussed last week.  That's where traders who were previously aggressive sellers of bonds (during the past several weeks of rising rates) are now buying to square up trading positions ahead of the FOMC. The bounce was big enough for several lenders to put out negative reprices so far.


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
99-13 : +0-06
FNMA 3.5
102-27 : +0-05
FNMA 4.0
105-24 : +0-05
Treasuries
2 YR
0.7020 : -0.0240
10 YR
2.3520 : -0.0380
30 YR
3.0820 : -0.0202
Pricing as of 6/15/15 12:16PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:17AM  :  ALERT ISSUED: Negative Reprices Increasingly Possible
10:54AM  :  ALERT ISSUED: Negative Reprice Risk Considerations
9:52AM  :  Bonds Stronger Overnight and Boosted by Data

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "RTRS- NAHB JUNE INDEX OF HOME SALES OVER NEXT SIX MONTHS 69 VERSUS REVISED 63 IN MAY"
Matthew Graham  :  "RTRS - NAHB JUNE INDEX OF PROSPECTIVE BUYERS 44 VERSUS 39 IN MAY"
Matthew Graham  :  "RTRS - NAHB JUNE INDEX OF CURRENT SINGLE-FAMILY HOME SALES 65 VERSUS REVISED 58 IN MAY"
Matthew Graham  :  "RTRS- U.S. JUNE NAHB HOUSING MARKET INDEX 59 (CONSENSUS 56) VERSUS 54 IN MAY"
Matthew Graham  :  "RTRS- EMPIRE STATE CURRENT CONDITIONS INDEX AT LOWEST SINCE JANUARY 2013"
Matthew Graham  :  "RTRS - NY FED'S EMPIRE STATE EMPLOYMENT INDEX AT +8.65 IN JUNE VS +5.21 IN MAY"
Matthew Graham  :  "RTRS - NY FED'S EMPIRE STATE CURRENT BUSINESS CONDITIONS INDEX -1.98 IN JUNE (CONSENSUS 6.00) VS +3.09 IN MAY"