We've had a nice little break from the recent norm today.  Domestic economic data is actually responsible for the lion's share of bond market movement this morning.  It probably doesn't hurt that  Greece-related headlines are at least 95% lower than yesterday's (there have been only a handful today vs hundreds yesterday).  Even then Retail Sales is a respectable enough data set when it comes to market moving potential, and this morning's was unequivocally weak.

Versus a median forecast of +0.2, the headline came in at -0.3.  Excluding the automotive sector, sales were down -0.1 vs a +0.5 forecast.  The most stripped-down reading (also referred to as "the control group," which factors out autos/gas/building supplies/food services) fell -0.1 versus +0.4 forecasts and +0.7 previously.

10yr yields were roughly unchanged on the morning but fell a quick 4bps after the data.  MBS rose from 102-15 in Fannie 3.5s to 102-20, but were already up 5 ticks before the data.  Both have maintained those initial gains after some volatility surrounding the NYSE open.  A modest advance in stocks looked like it would drag bond yields higher, but the lever disengaged at 10:30am (meaning stocks kept drifting higher while bonds held their ground).


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
99-04 : +0-10
FNMA 3.5
102-20 : +0-10
FNMA 4.0
105-20 : +0-09
Treasuries
2 YR
0.6410 : -0.0360
10 YR
2.4030 : -0.0430
30 YR
3.2000 : -0.0270
Pricing as of 7/14/15 11:56AMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:19AM  :  Reasonable Gains After Weaker Retail Sales; Contained for Now

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
JEREMEY BECK  :  "People don't shop cause they're broke. I bet over 50% of the loans I write are over 40 dti and that doesn't include mandatory health insurance premiums. Ma and Pa America are broke and that's why retail sales sucked. "
John Tassios  :  "Should be no surprise with retail sales. near 0 wage growth means very little disp incomes for consumers."
Matthew Graham  :  "RTRS- U.S. JUNE EXPORT PRICES -0.2 PCT (CONSENSUS +0.1 PCT) VS MAY +0.6 PCT (PREV +0.6 PCT)"
Matthew Graham  :  "RTRS- U.S. JUNE IMPORT PRICES -0.1 PCT (CONSENSUS +0.1 PCT) VS MAY +1.2 PCT (PREV +1.3 PCT)"
Matthew Graham  :  "RTRS- US JUN RETAIL SALES EX-AUTOS/GAS/BUILDING MATERIALS/FOOD SERVICES -0.1 PCT (CONS +0.4 PCT) VS MAY +0.7 PCT (PREV +0.7 PCT)"
Oliver Orlicki  :  "big miss"
Matthew Graham  :  "RTRS- US JUN RETAIL SALES -0.3 PCT (CONSENSUS +0.2 PCT) VS MAY +1.0 PCT (PREV +1.2 PCT)"