NFP Friday saw bond markets make a weak attempt to break an extended sideways range.  Today's trading activity has quickly ferried yields and prices right back into that range.  The chart below shows how this has played out in terms of 10yr yields.

2015-9-8 range return

The weakness was already trickling in during the overnight session, but it kicked into higher gear as this week's anticipated villain showed up: corporate debt issuance.  There is a more thorough discussion of this in the Week Ahead.

Long story short, corporate issuance had been at a relative standstill over the past 2 weeks, and there was relative agreement among market watchers that the current week would likely see a resurgence.  This quickly became apparent as several big name firms announced new offerings in the space of 30 minutes this morning.  This accounts for most of the move back into the range highlighted in the chart above.  Before that, reasonably strong data in Europe overnight and stock market gains already had bonds drifting into weaker territory.

There is no major domestic economic data on the calendar today.  The only scheduled event of note is the 3yr Treasury Auction at 1pm, and these don't typically cause much movement in longer-duration Treasuries or MBS.


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
100-21 : -0-07
FNMA 3.5
103-26 : -0-06
FNMA 4.0
106-12 : -0-03
Treasuries
2 YR
0.7370 : +0.0280
10 YR
2.1860 : +0.0546
30 YR
2.9600 : +0.0678
Pricing as of 9/8/15 12:07PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:51AM  :  After Modest Drift Overnight, Bonds Hammered by Corporate Issuance Early

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jason Anker  :  "not even fair to say #2 is Michigan, they should just say Detroit. "
Hugh W. Page  :  "Wow just looked at that Foreclosure Normalization article in the newstream. Florida still #1 and more than double #2 (Michigan) in completed foreclosures over the last year. Sorry, but nothing normal about that!"
Matt Hodges  :  "Great week ahead, MG. Well written and for people like me, pictures to comprehend."