Treasuries and MBS didn't end up making much progress today.  Fannie 3.5s are only 2 ticks higher than they were at the close on Friday and 10yr yields aren't even 1bp lower.  But bond markets were still arguably successful.  Reason being: stocks advanced by nearly 20 points in the S&P.

Why is this significant?  Because equities have been the primary guidance giver for bond markets recently, and a 20 point move in the S&P is not the sort of thing that bonds have been able to overcome until today.  That could mean today was simply less consequential, it could also be a sign of growing technical support in bond markets.

Whatever the case, the lack of movement means we remain in "post-volatility limbo."  This refers to the 3-5 days  of muted movement following a dramatic spike in bond markets.  It leaves the door open for more positivity without guaranteeing it.  Either way, it won't be long before we see rates commit to a directional move.  Even though the relationship broke down a bit today, stocks remain likely to play a large role in that decision.

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
100-25 : +0-04
FNMA 3.5
103-25 : +0-02
FNMA 4.0
106-10 : +0-01
Treasuries
2 YR
0.3550 : -0.0199
10 YR
2.1920 : -0.0068
30 YR
2.9660 : -0.0065
Pricing as of 10/20/14 4:58PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:37AM  :  ALERT ISSUED: Negative Reprice Risk Already a Consideration
9:40AM  :  Stocks and Europe Help Bond Markets Back Into Positive Territory
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Kenneth Crute  :  "680 to 700 should go with reserves, if you are buying a house you should have a little left in the bank after closing "
Jude Bridwell  :  "had a 722 last month 5% down getting a refer. Luckily, she had two months reserves and putting that in gave me A/E"
Sung Kim  :  "680-700 is marginal "
Ted Rood  :  "I'm talking about 680-700 scores with low ratios that DU doesn't take at times."
Sung Kim  :  "the only 5% down scenarios getting refers are those with marginal credit "
Sung Kim  :  "why should someone who has bad credit with only 5% down have the benefits of those that have good credit?"
Christopher Stevens  :  "will be very interested to see what the revised buy back guides look like"
Jude Bridwell  :  "Very true on that Ted. DU way too stringent"
Ted Rood  :  "It would be much more significant if they dialed back DU to accept more borrowers at high LTV's. Have had some 5% down deals that appeared to be minimal risk get refers."
Matthew Graham  :  "confirmation of what has already been reported"
Matthew Graham  :  "RTRS- FHFA'S WATT SAYS FANNIE MAE AND FREDDIE MAC WILL RELAX GUIDELINES ON WHEN BANKS MUST BUY BACK FAULTY LOANS"
Matthew Graham  :  "RTRS- U.S. HOUSING REGULATOR WATT SAYS WORKING WITH FANNIE MAE AND FREDDIE MAC TO ALLOW DOWN PAYMENTS OF 3 PCT ON MORTGAGES"
Ted Rood  :  "Love the 30 day charts for both MBS and treasuries!"
Sung Kim  :  "lets hope it inflects lower"
Matthew Graham  :  "2.16-2.18 is one important short term inflection point, 2.26-2.28 is the other"
Andy Pada, Jr.  :  "what is our range on the 10 YR?"