To many, Greece is the boy who cried wolf when it comes to negotiating reforms in exchange for aid from its Eurozone creditors.  So when the week began with those creditors laying out (and Greece agreeing to) a timeline to move forward with the negotiations, many market participants were skeptical.  After all, the timeline involved several steps that had previously resulted in delays or outright failures from Greece.  Why should this time be any different?

But so far, it's been different.  Whereas it might have been a longshot for Europe and Greece to make it to the negotiating table this weekend, it's become much more of a reality over the past two days.  With reports of several Greek political parties voting to accept the proposed reforms, Greece will be heading into this weekend's EU summit with live ammo.  Plenty of skepticism remains, but the fact that there's a legitimate chance of a deal this weekend is worth a good chunk of bond market negativity.

Yellen added to it at noon, saying that the lack of wage growth was in line with her views on labor market slack, but that she still sees the Fed hiking rates once in 2015.  Fed Funds Futures moved quickly back toward a more equivocal stance between January and December as the most likely month for lift-off.  Two days ago, January had a clear lead.

All told, MBS are down about 3/8ths of a point and 10yr yields are up 9bps to 2.406.  There isn't anything special left on the calendar for today, but still plenty of time for headlines out of Europe.

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
99-10 : -0-12
FNMA 3.5
102-22 : -0-10
FNMA 4.0
105-21 : -0-07
Treasuries
2 YR
0.6530 : +0.0680
10 YR
2.4060 : +0.0890
30 YR
3.1920 : +0.0760
Pricing as of 7/10/15 1:41PMEST
Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:21PM  :  ALERT ISSUED: Bond Markets Weaken Further After EU Close; Reprice Risk Outlook Cloudy
9:37AM  :  ALERT ISSUED: Bond Markets Continue Unwinding Greece/China Flight-to-Safety
Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "SV, the issue will really be what the u/w will accept, and if you have to default to their discretion you are pretty much screwed… you could try getting an audited YTD p&L to complete the two years, but as everyone is saying below, LP is the way to go"
Jason Anker  :  "fnam = exception LP = 1 year & fund"
Scott Valins  :  "then what is the purpose of this note from Fannie: However, a person who has a shorter history of self-employment — 12 to 24 months — may be considered, as long as the borrower’s most recent signed federal income tax returns reflect the receipt of such income as the same (or greater) level in a field that provides the same products or services as the current business or in an occupation in which he or she had similar responsibilities to those undertaken in connection with the current business. In such cases, the lender must give careful consideration to the nature of the borrower’s level of experience, and the amount of debt the business has acquired."
Ted Rood  :  "thought we decided LP was only option for that"
Scott Valins  :  "have you guys ever been able to get a self-employed borrower through DU when he went from w-2 as an attorney to self-employed and he's been S/E for over two years, but only have 1 year filed?"
Adam Dahill  :  "Yuck another red day. Glad I grabbed some locks mid week. "
Hugh W. Page  :  "Interesting observation by Rosenberg yesterday linking Commodity Prices to Fed action. Says he doesn't see Fed raising rates when the CRB Index is hitting 52 week lows. "