The overnight session was orderly and positive for Treasuries.  Yields continued mechanically grinding lower from yesterday's bounce at 1.785 (10yr Treasuries).  Early domestic traders piled on to the rally, with month-end index buyers getting in before further potential price increases.  This made for a trend that was largely intact before the weak economic data at 8:30am, though the data did provide a bit of a boost.

Bonds looked to be bouncing with stocks at the cash open, but held their ground as stocks topped out.  The next leg of the rally followed Greek headlines that effectively increased the odds of a Eurozone exit.  Greek bonds tanked and German bonds soared.  Treasuries didn't take too much part in that move, but it did spill over to some extent.

More than anything, there's a palpable sense of panic, desperation, and compulsion when it comes to snapping up the most stable sovereign debt.  We have to be prepared for the fact that this could have a lot to do with month-end trading positions, but it leaves all sorts of crazy doors open for next week.  Bottom line, the longer term downtrend is intact.  It would take a massive sell-off to call that into question.

The only real frustration of the morning is the inability on the part of MBS to keep up with the broader rally.  This is to be expected, of course, but still not fun to watch.  Fannie 3.0s have been bumping into a ceiling at 103-14 all morning will 10yr yields trend gradually lower.


MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
MBS
FNMA 3.0
103-14 : +0-14
FNMA 3.5
105-21 : +0-09
FNMA 4.0
107-03 : +0-05
Treasuries
2 YR
0.4680 : -0.0520
10 YR
1.6640 : -0.0920
30 YR
2.2410 : -0.0780
Pricing as of 1/30/15 1:12PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:16AM  :  Overnight Gains Extended After Morning Data; Now Bouncing With Stocks

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Jason Anker  :  "MH - that is correct"
Matt Hodges  :  "haven't had a non occ Freddie deal recently... occupant doesn't need any income at all, correct?"
Matthew Graham  :  "RTRS- BULLARD: NOTHING NEW ABOUT FED TAKING INTERNATIONAL CONSIDERATIONS INTO ACCOUNT"
Matthew Graham  :  "RTRS- BULLARD: IF JUST GO BY THE REAL ECONOMY, YOU'D BE OFF ZERO RATES NOW"
Matthew Graham  :  "RTRS- FED'S BULLARD: WAGE INFLATION IS A LAGGING INDICATOR, DON'T EXPECT SURGE: BLOOMBERG RADIO INTERVIEW"
Matthew Graham  :  "FYI, PPP = http://mndne.ws/1LqkVUC (conspiracy theory is that send out folks like Bullard with a headline-worthy quip that helps even out excessive volatility)"
Matthew Graham  :  "RTRS - FED'S BULLARD SEES RISK OF DELAYING RATE RISE, GETTING 'BEHIND THE CURVE'"
Matthew Graham  :  "Looks like the PPP sent out Bullard right on cue!"
Matthew Graham  :  "RTRS- U.S. Q4 WAGES/SALARIES +0.5 PCT VS Q3 +0.8 PCT (PREV +0.8 PCT)"
Matthew Graham  :  "RTRS - US. Q4 EMPLOYMENT COST INDEX +0.6 PCT (CONSENSUS +0.6 PCT) VS Q3 +0.7 PCT (PREV +0.7 PCT)"
Matthew Graham  :  "RTRS- US 2014 GDP +2.4 PCT VS 2013 +2.2 PCT"
Matthew Graham  :  "RTRS - US Q4 PCE PRICE INDEX -0.5 PCT (CONS +0.8 PCT), Q3 +1.2 PCT; CORE PCE +1.1 PCT (CONS +1.2 PCT), Q3 +1.4 PCT"
Matthew Graham  :  "RTRS- US ADVANCE Q4 GDP DEFLATOR -0.1 PCT (CONS +1.0 PCT) VS Q3 +1.4 PCT"
Matthew Graham  :  "RTRS - US Q4 CONSUMER SPENDING +4.3 PCT VS Q3 +3.2 PCT; DURABLES +7.4 PCT (Q3 +9.2 PCT)"
Matthew Graham  :  "RTRS- US ADVANCE Q4 GDP +2.6 PCT (CONSENSUS +3.0 PCT) VS Q3 +5.0 PCT; FINAL SALES +1.8 PCT (CONS +3.3 PCT), Q3 +5.0 PCT"