Yesterday's sell-off was somewhat disconcerting as it raised the possibility that the push back against September's weakness had run out of steam.  Today was a relief then, in that MBS and Treasuries proceeded to their best levels in two weeks, thus keeping the hope alive for the bounce back to continue. 

Help came from European markets at first.  German Bunds moved back under 1.0% as part of a rally that began right from the start of the European session.  US equities markets took the baton in the morning with S&P futures losing roughly 30 points from peak to trough.  This was only the 4th time this year that the S&P has crossed convincingly below its 50-day moving average.

Economic data, once again, played no role in motivating markets.  The Durable Goods headline, despite being seemingly huge at -18.2 was a non-event (due to last month's huge Boeing orders) and very close to forecasts to boot.  Jobless Claims haven't been moving markets as investors' attention has been less attuned to how many people are working and more to wages, hours, and spending.


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
98-20 : +0-12
FNMA 3.5
102-08 : +0-09
FNMA 4.0
105-13 : +0-08
Treasuries
2 YR
0.5550 : -0.0360
10 YR
2.5040 : -0.0650
30 YR
3.2120 : -0.0700
Pricing as of 9/25/14 5:15PMEST

Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
1:42PM  :  Bond Markets At Best Levels Despite Weaker 7yr Auction
9:43AM  :  Europe Leads US Bonds Back to Positive Territory; Domestic Data a Non-Issue

MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Brent Borcherding  :  "Agreed, BE at 3.875% sound about right."
Matthew Graham  :  "sustained move, 3.875-4.0"
Jason Anker  :  "I'd say 3.875 30 fixed based on very recent 2.3 correlations"
Brent Borcherding  :  "Should MBS follow, where would 2.25-2.3 on the 10 yr put rates?"
Matthew Graham  :  "C-"
Andy Pada, Jr.  :  "survey says..."
Matthew Graham  :  "RTRS- U.S. 7-YEAR NOTES BID-TO-COVER RATIO 2.48, NON-COMP BIDS $18.79 MLN"
Matthew Graham  :  "RTRS- U.S. SELLS $29 BLN 7-YEAR NOTES AT HIGH YIELD 2.235 PCT, AWARDS 61.20 PCT OF BIDS AT HIGH"
Daniel Kramer  :  "clayton is correct, document all expenses directly related to cash used from line of credit: receipts, contracts, etc"
Clayton Sandy  :  "if you can show it all went into the house, I've done those as rate/term"
Ben Biscoe  :  "question on conv cash out/ rate and term refinances. if a borrower gets a line of credit specifically to do home improvements and can document all of the work done, can that be done as a rate/term or does it have to be cash out? i think some non conforming will allow it but not sure about conventional. "