Treasuries were initially a bit weaker in the overnight session, but along with German Bunds, found their footing around 7am.  MBS and Treasuries crossed into positive territory shortly after the 8am open and never looked back.

The first leg of the rally correlated with heavy losses at the stock market cash open.  The stock selling didn't translate to much in terms of bond market gains, but it helped.  After it became clear that stocks were not staging any sort of heroic comeback, it similarly became clear that bond markets weren't going to give up any more ground.

Following the 3yr Treasury auction (though not necessarily because of it), the second leg of the rally took 10yr yields down toward 1.90 and Fannie 3.0 MBS up to 102-20.  During that time, speakers from both the Fed and ECB were well-received by bond markets.  Gains leveled off before 3pm and we've seen very little movement in either direction since then.

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
102-19 : +0-06
FNMA 3.5
105-08 : +0-03
FNMA 4.0
106-31 : -0-04
2 YR
0.5490 : -0.0160
10 YR
1.9090 : -0.0411
30 YR
2.4950 : -0.0366
Pricing as of 1/12/15 5:13PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:01PM  :  ALERT ISSUED: Ginnie-Specific Reprice Risk; Fannie/Freddie Doing Fine
9:41AM  :  Europe, Oil, Stocks, and Technical Support Help Bonds Into Positive Territory

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Bryce Schetselaar  :  "Yes, BB"
Ben Biscoe  :  "so am i reading that MIP chart correctly, LTVs at or below 90% dont have life of loan MI?"
Matthew Graham  :  "95% or less = 80bps. over 95% = 85 bps"
Matthew Graham  :  "There's also this addendum TR. Not sure if you saw it:"
Victor Burek  :  "cause the old mi doesn't matter"
Ted Rood  :  "1.1% not shown on the table, only 1.3 to 1.55"
Victor Burek  :  "its going to .80"
Michael Mitchell  :  "Excellent Question TR."
Matthew Graham  :  "B+"
Matthew Graham  :  "RTRS- U.S. 3-YEAR NOTES BID-TO-COVER RATIO 3.33, NON-COMP BIDS $51.55 MLN"
Ted Rood  :  "Interesting on the new MIP. The mortgagee letter says "previous MIP is 130-155 bps, new MIP is 50 bps less". I have a borrower paying 110 bps now, did his loan in 2012. Wonder if his MIP will go to .6%, or .8% so he wouldn't get the full benefit of the .5% drop?"
Gus Floropoulos  :  "very healthy and consistent rally since the end of the taper tantrum, technicals look great"