The last potentially notable event on today's calendar is the 7yr Treasury Auction coming up at 11:30am.  7yr auctions aren't typically something markets care much about, and today's is only really worth mentioning on a relative basis--that is to say, 'relative' to the barren wasteland that is the Christmas week trading environment.  In such an environment, Treasury auctions are one of the few things that FORCE a certain pre-determined amount of bond market volume to be transacted.

That's why yesterday's 5yr auction caused as much of a stir as it did.  It exposed a fragility in the thin conditions.  Even after a significantly weaker morning, the yields still weren't high enough to attract more than 2.39 dollars bid for each dollar auctioned--right in line with multi-year lows.  Considering 7yr auctions are even more challenging for market participants (not a big market for 7s), the safest play was to sell, sell, sell.

At least today's selling has been more moderate by comparison.  Fannie 3.5s are down only 2 ticks at 103-20.  10yr yields, unfortunately just cracked 2.30.  Refer to this morning's Day Ahead for thoughts and analysis on that broader weakness.


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
100-12 : -0-10
FNMA 3.5
103-20 : -0-02
FNMA 4.0
106-10 : -0-01
Treasuries
2 YR
0.7470 : +0.0037
10 YR
2.3000 : +0.0310
30 YR
2.8790 : +0.0210
Pricing as of 12/24/14 11:19AMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:28AM  :  Pain Continues for Bond Markets; Not a Buyer was Stirring

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Andy Pada, Jr.  :  "And so it goes the Day Before, go home, have fun and love a little more."
Andy Pada, Jr.  :  "The traders are finished, the Buyers are done...they've mentally checked out and are ready for fun."
Andy Pada, Jr.  :  "The Members were waiting, still hoping for green...But it ain't going to happen, you know what I mean?"
Jeff Anderson  :  "Thanks for the chart, MG. Made me feel better but it still feels like the Grinch is in the drivers seat the last few days. Hoping his heart grows 10x its size tonite. Merry Xmas all. "
Matthew Graham  :  "RTRS- US CONTINUED CLAIMS ROSE TO 2.403 MLN (CONS. 2.368 MLN) DEC 13 WEEK FROM 2.378 MLN PRIOR WEEK (PREV 2.373 MLN)"
Matthew Graham  :  "RTRS- US JOBLESS CLAIMS FELL TO 280,000 DEC 20 WEEK (CONSENSUS 290,000) FROM 289,000 PRIOR WEEK (PREVIOUS 289,000)"