Bond markets did nothing wrong today.  There was a bit of red on trade screens (indicating modestly higher yields in Treasuries and lower MBS prices), but it was completely incidental in the bigger picture.  Case in point, we've been watching a narrow range of 10yr yields between 1.54 and 1.59 (which, itself, exists inside the only slightly less narrow 1.52-1.62 range).  This range contained almost all of last week's trading, and it did exactly the same today.  

10yr yields hit the 3pm close just over 1.57, and nothing under 1.59 would even begin to ruffle our feathers.  MBS were down 3 ticks at the 3pm close, but with only one negative reprice reported.

There were no significant pieces of economic data in the US today, and there certainly wasn't any significant volume in bond markets.  In fact, it was one of the slowest non-half-days of the year.  The lack of participation was evident in the volatility surround the CME opening bell at 8:20am.  The next 2 hours saw bond markets break back into positive territory before slowly trickling into a red afternoon.  In general, we're waiting for this week's bigger data and events, and things don't get too serious in that regard until Wednesday's FOMC announcement. 

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
103-14 : -0-03
10 YR
1.5770 : +0.0090
Pricing as of 7/25/16 4:29PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:21PM  :  ALERT ISSUED: On The Edge of Negative Reprice Risk Territory
1:33PM  :  ALERT ISSUED: Bonds Losing Ground on New Japanese Stimulus Rumors
10:28AM  :  Back to Green as Traders Lined-Up To Buy Bonds at Open

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Hugh W. Page  :  "You know things are nutso when Spanish 3 yr yields are negative."
Matthew Graham  :  "when things get serious..."
Hugh W. Page  :  "Just like they said they wouldn't go negative on rates and then did so 2 weeks later :)"
Matthew Graham  :  "Yes, there's no consensus, but a decent chance that Japan will do "something," though they've discounted rumors of "helicopter money.""
Ronald Robison  :  "are people expecting japan to pump more money and drive yields lower?"
Matthew Graham  :  "Indeed, that is the big unknown with this meeting. The counterpoint is that it's already been priced-in to some extent."
Ronald Robison  :  "makes me want to lock everything by tomorrow"
Ronald Robison  :  "i'm worried fed will put raise back on the table for next meeting"