• Bonds had an OK day overall, but MBS stuck it to Treasuries
  • NFP 160k vs 202k forecast.  Nothing interesting re: wages
  • Fannie 3.0s ended 1 tick lower.  10yr yields ended 3.7bps higher

Any apprehension about the inability of NFP to create its characteristic level of market movement was well-earned today as bond markets fizzled sideways.  We sometimes talk about "inside days" where the current trading range occurs completely "inside" the previous day's trading range.  With the exception of one brief rally during the knee-jerk minutes following NFP, today was an inside day for Treasuries.  10yr yields almost perfectly split the difference between yesterday's highs and lows by the closing bell.

All that to say that there really wasn't a reaction to NFP today.  It's nice that bond markets managed to keep most of the gains they'd earned this week, if nothing else.

The only other bonus was the fact that MBS did very well compared to Treasuries.  Part of this is due to the shape of the yield curve.  MBS have a shorter implied duration than 10 years, and shorter duration Treasuries outperformed today.   The easier explanation would simply be the fact that MBS didn't participate as much in this week's rally  leading up to today.  Case in point, Fannie 3.0s barely budged on Wednesday while Treasuries rallied 3bps.  In that context, today was just a solid opportunity for MBS to get caught up.  

Whatever the case, several lenders' rate sheets are in the best shape since May 6th, 2013.

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
102-25 : -0-02
10 YR
1.7790 : +0.0320
Pricing as of 5/6/16 6:28PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
2:11PM  :  ALERT ISSUED: Treasuries Pulling MBS Weaker; Reprice Risk?
9:21AM  :  ALERT ISSUED: Negative Reprice Risk Increasing, but Only For Earliest Rate Sheets
8:38AM  :  First Move is Stronger After NFP, but...

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Dio Vannucci  :  "That. Just. Happened."
Andrew Russell  :  "Boom"
Dio Vannucci  :  "Main reason I'm a member other than MG's poignant commentary and stunning charts"
Andrew Russell  :  "anytime, that is what we at the MBSLive Chat are for Dio..."
Dio Vannucci  :  "TY Mr. Russell"
Andrew Russell  :  "foreign national program, New Penn and Land Home, 65 to 70 ltv i think"
Dio Vannucci  :  "Have a Canadian citizen who just called me and has 20 years of canadian credit but nothing here. Is only on a work visa. I don't even know where to begin, don't see this very often in Arkansas."