Trading conditions continue to be slow during these holiday weeks.  This greases the skids for bigger movements regardless of motivation.  Last Wednesday saw significant weakness, and while it was most easily chalked up to the strong GDP reading, we already discussed (HERE) why and how that wasn't the case. 

The bright side to that weakness is that it flushed out sellers (or rather, rolled them up in its snowball).  The result has been slow, steady gains ever since, with a bit of a shot in the arm from yesterday's Eurodrama.  I would note though, that US bond markets held remarkably more true to their trend than they otherwise would, given the European bond market movements.  That's just an observation about year-end tradeflows having a mind of their own and not really caring about data or events except as absolutely necessary. 

The gains now bring Treasuries back in line with levels seen on the morning of Dec 23 (before the sell-off).  MBS are doing even better.  Not only are they back through Wednesday's levels, but if they close today at current prices, it would be the 3rd best day this year.


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
101-05 : +0-05
FNMA 3.5
104-07 : +0-04
FNMA 4.0
106-22 : +0-01
Treasuries
2 YR
0.6840 : -0.0280
10 YR
2.1720 : -0.0320
30 YR
2.7440 : -0.0300
Pricing as of 12/30/14 12:25PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:27AM  :  Slow and Green, Just the Way We Like It

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Hugh W. Page  :  "Yes AH but not the MCM piece yet just straight 97 which is not as attractive."
Andrew Haynes  :  "has anyone seen the new FNMA 97% product yet?"
Hugh W. Page  :  "Nice explanation on Bunds conundrum. Personally I think the predominate reason in your list is #3"
Matthew Graham  :  "
MBS Live Update Issued
Slow and Green, Just the Way We Like It"
Matthew Graham  :  "lower = economically stronger"
Matthew Graham  :  "no forecast"
Andy Pada, Jr.  :  "is that h-t-g number a beat or a miss?"
Matthew Graham  :  "RTRS- US JOBS HARD-TO-GET INDEX 27.7 IN DEC VS NOV REVISED 28.7 (PREVIOUS 29.2) - CONFERENCE BOARD"
Matthew Graham  :  "RTRS - US DECEMBER CONSUMER CONFIDENCE INDEX 92.6 (CONSENSUS 93.0) VS NOVEMBER REVISED 91.0 (PREVIOUS 88.7) - CONFERENCE BOARD"
Matthew Graham  :  "RTRS - US OCT 20-METRO AREA HOME PRICES NON-ADJUSTED -0.1 PCT (CONSENSUS 0.0) VS REVISED -0.1 PCT IN SEPT -S&P/CASE-SHILLER"
Matthew Graham  :  "RTRS - US OCTOBER 20-METRO AREA HOME PRICES +4.5 PCT (CONSENSUS +4.4 PCT) FROM YEAR AGO -- CASE-SHILLER"