Except for the very end of the trading session, today was all about domestic economic data and all about the logical bond market weakness that followed it.  Every report was against us, with the two biggest offenders hitting hard at 8:30am.  Core CPI rose to 2.3 from 2.2 previously and Retail Sales crushed the +0.1 forecast to come in at +0.6 percent (granted, there was a -0.3 revision to last month, which offset some of the damage we might have otherwise seen).

Bond markets had been flat until that point and promptly began screaming higher.  The rest of the morning's economic data didn't raise any compelling counterarguments although nothing hit as hard as the early data.  Consumer Sentiment was actually weaker at the headline level, which should have been helpful, but the inflation components were higher.  When it comes to Consumer Sentiment, the inflation readings are probably more important than the headline these days, considering the Fed has said outright that it's looking for a sustained increase in consumer inflation expectations.

MBS outpeformed Treasuries, but both took their lumps, finally leveling off well into the worst levels of the week by 2pm.  The normal "Friday afternoon drift" looked like it was in the works when markets suddenly convulsed heading into the close.  This had everything to do with headlines out of Turkey regarding a military coup.  This news came so late in the day that it's anyone's guess where things will be on Monday morning and what the effects will be on bonds.  Markets in general really didn't have a chance to trade it today.

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
103-19 : -0-01
10 YR
1.5580 : +0.0280
Pricing as of 7/15/16 6:33PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
4:43PM  :  Yes, It's Definitely Turkey
1:02PM  :  ALERT ISSUED: Negative Reprices Increasingly Possible As MBS Bounce Along Lows
10:12AM  :  ALERT ISSUED: Reprice Risk Debuts as Consumer Sentiment's Inflation Reading Surges
9:38AM  :  ALERT ISSUED: Batten Down Hatches, Storm Keeps Blowing; Could it Blow Over
8:35AM  :  ALERT ISSUED: Balmy Retail Sales Torpedos Bond Battleship