The S&P/Case-Shiller Home Price Index has been released...

Reuters Quick Recap....

RTRS-US AUG HOME PRICES IN 20 METRO AREAS -0.3 PCT SEASONALLY ADJ (CONSENSUS -0.2) VS -0.2 IN JULY- S&P/CASE-SHILLER

RTRS-US AUGUST 20-METRO AREA HOME PRICES UNADJUSTED -0.2 PCT (CONSENSUS +0.2) VS +0.6 PCT IN JULY- S&P/CASE-SHILLER

RTRS-US AUGUST 20-METRO AREA HOME PRICES +1.7 PCT (CONSENSUS +2.1 PCT) FROM YEAR AGO -- CASE-SHILLER

RTRS-US AUGUST HOME PRICES IN 10 METRO AREAS -0.2 PCT SEASONALLY ADJUSTED VS +0.0 PCT JULY - CASE-SHILLER

RTRS-US HOME PRICES IN 10 METRO AREAS UNADJUSTED -0.1 PCT IN AUGUST VS +0.8 PCT IN JULY - S&P/CASE-SHILLER

RTRS-US AUGUST HOME PRICES IN 10 METROPOLITAN AREAS +2.6 PCT FROM YEAR AGO - S&P/CASE-SHILLER

 "A disappointing report. Home prices broadly declined in August. Seventeen of the 20 cities and both composites saw a weakening in year-over-year figures, as compared to July, indicating that the housing market continues to bounce along the recent lows," David M. Blitzer, chairman of the index committee at Standard & Poor's, said in a statement.

Market Reaction....

10s moved as high as 2.614% ahead of the release. After the release the benchmark 10yr note is -10/32 at 100-06 yielding 2.603%.  Remember 2.60% is a critical support level.

Rate sheet influential MBS coupons barely budged as the data flashed but we were already near a one-month lows so the damage was done in advance. The December FNCL 3.5 is currently -0-08 at 100-07. The December FNCL 4.0 is -0-06 at 102-23.

Rate sheet rebate will be worse today. If you didn't get a reprice for the worse yesterday afternoon, your pricing will take an extra hit today.

READ MORE ABOUT THE FACTORS CURRENTLY INFLUENCING THE BOND MARKET