While trading activity is nowhere near that seen on Wednesday through Friday last week, it's picked up a bit today.  That's largely been a net positive for bond markets.  In fact, Treasuries handily outperformed Europe in the overnight session, which is not common in general, let alone on the first day of a 3-day Treasury auction cycle.   Traders may be gearing up for what they expect to be a bond-friendly FOMC Minutes release tomorrow afternoon.

There hasn't been much by way of "cause and effect" motivation for bonds so far.  The IMF revised global growth forecasts lower just before the morning's best gains.  That said, it's not clear that the news was the reason for the gains.  It's slightly easier to make a case for an effect on stocks, but both stocks and bond yields were already in the process of moving lower.  During the bounces for stocks, bonds haven't followed with a proportionate amount of weakness.

MBS are underperforming Treasuries a bit, but are also well into their best levels in over a month.  Positive reprices are a distinct possibility in the afternoon.


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
99-18 : +0-09
FNMA 3.5
103-01 : +0-07
FNMA 4.0
106-03 : +0-05
Treasuries
2 YR
0.5120 : -0.0240
10 YR
2.3730 : -0.0470
30 YR
3.0850 : -0.0420
Pricing as of 10/7/14 12:15PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:48AM  :  Big Trades + Slow Market = Big Moves This Morning
9:07AM  :  Treasuries Resist European Bond Market Weakness Overnight

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Brent Borcherding  :  "I'd suggest you look at their forecast over the last 2-3 years, judge the results, and I think the answer will be clear, AP."
Andy Pada, Jr.  :  "Goldman forecasts the 10 YR to be 3.0% by end of the year; how likely is that?"
Matthew Graham  :  "RTRS- IMF CUTS GLOBAL ECONOMIC GROWTH FORECAST TO 3.3 PCT FOR 2014, 0.1 PCT POINT LOWER THAN IN JULY"
Victor Burek  :  "IMF cuts outlook for global growth"
Robert Rippy  :  "I get emails from one of their reps. I will contact him. Another reason to be a member of this site."
Mike Drews  :  "Caliber"
Robert Rippy  :  "Anyone know a lender that will do FHA with no credit score. Nothing derogatory, just no traditional history. Does have enough non-traditional to meet FHA guidelines."