European bond markets broke out to an early lead in the overnight session with Treasuries doing a great job of resisting the gains.  It's not that US bond markets weren't improving during that time, just that it wasn't nearly as quickly as Europe.  In fact, both MBS and Treasuries ended up beginning the domestic session in slightly weaker territory while European trading implied a much stronger open.

It didn't take long for US markets to get on board, however.  The CME open at 8:20am saw solid buying demand waiting to be unleashed on the Treasury futures complex.  Eurodollar and Oil futures were also active.  As seen in the chart below, Oil, Euros, and rates were all generally moving together during the overnight and morning hours. 

2014-12-8 combo

To be sure, the correlation wasn't that great in the short term, but equities markets were much more disconnected.  12:11pm changed that as stocks quickly got caught up with the rest of the pack.  From there, markets continued to move together into the 2pm hour before bottoming out and drifting mostly sideways toward the close.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
100-24 : +0-10
FNMA 3.5
104-02 : +0-11
FNMA 4.0
106-25 : +0-08
2 YR
0.6360 : -0.0073
10 YR
2.2590 : -0.0475
30 YR
2.9050 : -0.0601
Pricing as of 12/8/14 4:33PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:43AM  :  Bond Markets Followed Europe Into the Green, but not for Long

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jeff Anderson  :  "Back to pre-NFP. Very nice."
Ira Selwin  :  "Looks to be similar to the past Fannie 97% product, except no counsleing/income requirements. FTHB only, single family only."
Ira Selwin  :  "In case anyone hasn't noticed - 97% Fannie/Freddie info on the news stream "
Ira Selwin  :  ""
Ryan Ford  :  "Ted, you need 30% down for streamline condo review in FL for a 2nd home, but you can do 25% down or 20% down for full project review depending on the lender"
Ted Rood  :  "Is a requirement for 30% down for 2nd home condo in FL a Fannie requirement, or an overlay?"