MBS Live: MBS Afternoon Market Summary
Today was an uncommon combination of strong volume and insanely contained price ranges.  It's not a frequent occurrence and even less so outside quarter-end trading sessions.  MBS markets absorbed a ton of new origination supply, all of which was taken very much in stride as mortgages stayed tight to Treasuries.  That said, neither side of market moved much and Fannie 3.0s clung to a miraculously narrow range of 103-02 to 103-05.  Even the overnight movement in European markets was more contained than it has been in recent sessions.  It caused a bit of weakness at the open, but lackluster economic data was there to reign us back in to over around unchanged levels all day.  Exciting news from Italy never came, and even when Bersani's party admitted as much, it was too late for markets to let us know whether or not they cared.  NOTE: Markets are closed tomorrow for Good Friday.  There is no scheduled commentary, but Italian president Napolitano will be continuing discussions with other political leaders and we'll endeavor to let you know if anything dramatic transpires.
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
103-05 : -0-01
FNMA 3.5
105-19 : +0-00
FNMA 4.0
106-19 : -0-01
FNMA 4.5
107-23 : -0-01
GNMA 3.0
104-17 : -0-01
GNMA 3.5
107-19 : +0-01
GNMA 4.0
109-01 : +0-01
GNMA 4.5
109-11 : -0-03
FHLMC 3.0
102-23 : +0-00
FHLMC 3.5
105-09 : +0-01
FHLMC 4.0
106-09 : +0-00
FHLMC 4.5
107-00 : -0-01
Pricing as of 3:22 PM EST
Afternoon Reprice Alerts and Updates
Below is a recap of instant Reprice Alerts and updates issued via email and text alert to MBS Live subscribers this afternoon.
1:27PM  :  Big Buying At CME Close Keeps Range Contained
Heading into the 1pm early close of the CME pit, selling ramped up aggressively in Treasury futures, but without serious volume. Even though this was only good for just over a bp of movement in actual yields, it brought 10's back to their highest levels since the 8:30am economic data and put a slight amount of pressure on MBS.

Right at the close, big month-end buying came in just before the buzzer, signaling to markets that the selling was a positioning push to pave the way for the buying and 10's were free to maintain the existing micro-range between 1.85 and 1.862. And so they have. In other words, the brief move weaker heading into 1pm was a "false alarm" of sorts, and we can log another vote in favor of "sideways."

MBS bounced in their micro range of 103-02+ to 103-05 and are currently 103-04. Very uneventful month/quarter-end day so far, and only 40 minutes left before the early close for the rest of the bond market.
Live Chat Featured Comments
A recap of the featured comments from the MBS Live Dashboard's Live Chat feature, utilized by hundreds of industry professionals each day.
Chris Kopec  :  "I agree, Brent. The NFP tractor beam is right around the corner. "
Jason Anker  :  "my only floats are time based not price based"
Brent Borcherding  :  "My opinion is yesterday and today are great locking opportunities. We have moved to the low end of the range, and one can HOPE we break lower, but locking would be the most statistically prudent decision."
Moshe Berg  :  "quick consensus I. You guys locking or floating into the long weekend?"
Bryan LaFlamme  :  "You can still roll in the Up Front MI, though; appraisal or not."
Bryan LaFlamme  :  "Very much like FHA Streamlines in that way"
Bryan LaFlamme  :  "USDA streamlines don't need appraisals unless you want to roll closing costs in"
Jason Harris  :  "What is the story on the USDA streamline? I have a guy wo has a USDA with Chase....looks to be a bit u/w....anybody that can help him?"
Nate Miller  :  "no doubt, instant weakness...now lets see a bounce"
Victor Burek  :  "at least supply is out of the way"
Matthew Graham  :  "That one was bad enough to cause a bit of weakness."
Matthew Graham  :  "RTRS- US TREASURY - PRIMARY DEALERS TAKE $13.05 BLN OF 7-YEAR NOTES SALE, INDIRECT $10.29 BLN "
Matthew Graham  :  "RTRS- U.S. 7-YEAR NOTES BID-TO-COVER RATIO 2.56, NON-COMP BIDS $11.49 MLN "
Matthew Graham  :  "RTRS- U.S. SELLS $29 BLN 7-YEAR NOTES AT HIGH YIELD 1.248 PCT, AWARDS 51.82 PCT OF BIDS AT HIGH "
Matthew Graham  :  "7yr Auction coming up in moments. These have been relatively lackluster, consistently, but also relatively limited in their impact. Only 1 out of the last 7 examples has come in at a lower than expected yield. Last 2 auctions provide the high/low range for bid-to-cover at 2.81 and 2.56 respectively with a 4-auction average of 2.70. Indirects have taken about 38% of the last 4 auctions, and just over 42% for the 4 before that. Results momentarily"
Matthew Graham  :  "http://www.reuters.com/article/2013/01/02/diary-european-holidays-idUSL0613093820130102"
Victor Burek  :  "is europe trading tomorrow?"
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