Today's bond market movements were a bit more pronounced than yesterday's, but similar in some regards.  The first similarly was the inconsequential drifting movement during the overnight trading session.  10yr yields were slightly higher by the domestic open, but the first move was right back down into the prevailing range. 

Today continued borrowing from yesterday's playbook as the 930am NYSE open brought additional trading cues for Treasuries.  This time, however, it suggested weakness as opposed to strength.  Bonds continued losing ground after the oil inventories data, but oil prices themselves only basked in the glow for a moment before traders seized the opportunity to sell at the new, higher prices.

Bonds rallied with falling oil and stocks, but held something back for the 10yr auction.  The auction itself was decent, but ended up being more of a market mover simply because traders no longer had to wait to get on board with the day's move.  The gains carried 10's back to the same old low end of the range at 2.20, making for a relatively tame result to a somewhat more volatile day.

NOTE: If you're wondering why the MBS charts look so different today, it's due to the roll.  This means that the right side of a 2-day chart of any Fannie/Freddie 30yr fixed coupon is conveying prices of January coupons, while the left side conveys December coupons.  There was roughly a quarter point gap between the two, regardless of market movement (thus making it look like MBS tanked overnight).

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
100-03 : -0-03
FNMA 3.5
103-09 : -0-02
FNMA 4.0
105-29 : -0-01
2 YR
0.9230 : -0.0120
10 YR
2.2110 : -0.0110
30 YR
2.9640 : +0.0060
Pricing as of 12/9/15 5:20PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:50AM  :  ALERT ISSUED: Another Uptick in Negative Reprice Risk, but Maybe Contained
10:01AM  :  ALERT ISSUED: Negative Reprice Risk Already a Consideration

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "Considering the rally that led up to the auction, that's not too bad. Grading outright, it's a B-/C+, but on the curve, it's a B+"
Matthew Graham  :  "RTRS - U.S. SELLS $21 BLN 9-YR 11-MO NOTES AT HIGH YIELD 2.233 PCT, AWARDS 29.93 PCT OF BIDS AT HIGH"
Matthew Graham  :  "10yr Auction Preview: Recent average bid to cover has been in the 2.6-2.7 range. Indirect bidding has been near 60%. All but 2 of this year's 10yr auctions have 'stopped through' at a lower yield than the 1pm expectation ("when-issued" or WI). Current WI is 2.226"