Calmly and coolly, MBS marched to the best levels of the year this afternoon, and for no particular reason as far as today's events were concerned.  As was the case yesterday, there were various headlines surrounding Ukraine/Russia, but not of them looked overly connected to market movement. 

Treasuries came out of the gate strong at the 8:20am 'pit open' at the CME, quickly erasing overnight losses and moving under 2.60% in terms of 10yr yields.  MBS made a similar move but stayed steadier in their pace of improvement throughout the day.

Fannie 4.0s are currently drifting out at 105-08, up 7 ticks on the day and Fannie 3.5s are at 102-03, also up 7/32nds.  Several lenders released positive reprices in the afternoon.

Tomorrow brings a more relevant Treasury auction with 10yr Notes at 1pm.  Before that however, Fed Chair Yellen begins 2  days of testimony at Congress.  The first day of these semi-annual testimonies is typically the bigger potential market mover, and bonds continue being "ready" to confirm or stage a breakout of their Feb-Present range. 

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
97-32 : +0-05
FNMA 3.5
102-03 : +0-07
FNMA 4.0
105-08 : +0-07
Treasuries
2 YR
0.4225 : +0.0035
10 YR
2.5951 : -0.0159
30 YR
3.3862 : -0.0218
Pricing as of 5/6/14 4:19PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
3:14PM  :  Uneventfully Holding Gains; Ongoing Positive Reprice Potential
12:21PM  :  Back at Yesterday's Highs; Positive Reprice Potential
9:11AM  :  Bond Markets Turn Positive After Weaker Overnight Session
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "RTRS - U.S. SELLS $29 BLN 3-YEAR NOTES AT HIGH YIELD 0.928 PCT, AWARDS 65.04 PCT OF BIDS AT HIGH"
Ted Rood  :  "Anyone else seeing worse pricing than yesterday PM? Just reran two I looked at then, we were worse on both!"
Jason West  :  "I have 3 files worse than Friday"
Matthew Graham  :  "RTRS - U.S. SENATE BANKING COMMITTEE TO VOTE ON BILL TO WIND DOWN FANNIE MAE, FREDDIE MAC NEXT WEEK, CONGRESSIONAL AIDE SAYS"
Andy Pada, Jr.  :  "I enjoyed Ackman's view on Fannie/Freddie"
John Paul Mulchay  :  "I truly hope that doesn't fly."
johnmurphy  :  "Sure, If I had an 11% stake I'd like them to stick aruond too:"
johnmurphy  :  ""..........Pershing Square has about 11% economic exposure to Fannie Mae and Freddie Mac shares based on common stock outstanding...""
Andy Pada, Jr.  :  "his motive doesn't bother me."
johnmurphy  :  "Absolutely no appetite in COngress to reward hedgies inthe F/F restructure. I just hope small lenders (ie most of us) dont end up competing with the origination arm of securitization platform"
Andy Pada, Jr.  :  "that is why we need f/f. give Congress another reason to maintain the entities."
Victor Burek  :  "middle class needs fannie and freddie"
David Kramer  :  "bond yields moving lower..like that Grundlach guy! Seems like the only fund manager talking real sense. Was forced out of TCW and started his own successful fund.. good stuff props to ya!"
Matthew Graham  :  "how'd last year go for him again?"
Matthew Graham  :  "point being, it's always nice to see experts saying things that are in line with our hopes, but beware the 'confirmation bias.' In a relatively stark example of this, Gundlach said the "liquidiation in bond markets is over" when 10's fell back down to 2.47. Interestingly enough, they never made it back below 2.47. "
Jeff Anderson  :  "I like hearing what makes me feel warm and fuzzy. Everything else is just noise. It's been pretty amazing for the last few years, probably forever but didn't have the amount of coverage out there as it does now, how often really smart people are on opposite sides of the coin. "