It's been an uneventful day so far for bond markets, but a noticeably stronger one.  The overnight session got thing off to a positive start as Treasuries made gains during Asian market hours.  The onset of European trading pushed us back in the other direction, but not enough to bring domestic bonds into negative territory.  As such, both MBS and Treasuries opened near Friday's strongest levels.

From there, they've added to the gains, with the economic data being the easiest explanation.  Every report has been weaker than expected this morning with Industrial Production being the biggest miss.  That worked in our favor as it was the biggest report of the morning.  Both stocks and bonds traded that data as if it downgraded expectations for an early Fed rate hike, but only to a small extent.

There are no other major market movers on the calendar for this afternoon.  10yr yields are holding just over 4bps lower than Friday's latest levels and Fannie 3.0s are 6 ticks higher at 101-09.


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
101-09 : +0-05
FNMA 3.5
104-10 : +0-04
FNMA 4.0
106-15 : +0-03
Treasuries
2 YR
0.6450 : -0.0160
10 YR
2.0790 : -0.0385
30 YR
2.6580 : -0.0423
Pricing as of 3/16/15 10:59AMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:29AM  :  Bond Markets Improve on Overnight Gains After First Round of Data

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "From Friday's opener: "Here's a hint/clue though: don't think of moving averages like ceilings and floors with bounces and breaks. They're more like guideposts that let us know how a trend is progressing and what it's doing as opposed to what it's going to do next." http://mndne.ws/1GLF7fi"
Diodato Vannucci  :  "MG, What would the potential effect be if MBS are able to close above the 100 DMA?"
Matthew Graham  :  ""labor market slack!""
Matthew Graham  :  "RTRS - U.S. FEB CAPACITY USE RATE 78.9 PCT (CONS 79.5 PCT) VS JAN 79.1 PCT (PREV 79.4 PCT)"
Matthew Graham  :  "big negative revision there!"
Matthew Graham  :  "RTRS - U.S. FEB INDUSTRIAL OUTPUT +0.1 PCT (CONSENSUS +0.2 PCT) VS JAN -0.3 PCT (PREV +0.2 PCT)"
Matthew Graham  :  "RTRS- NY FED'S EMPIRE STATE EMPLOYMENT INDEX AT 18.56 IN MARCH VS 10.11 IN FEB"
Victor Burek  :  "another weaker than expected report"
Matthew Graham  :  "RTRS- NY FED'S EMPIRE STATE INDEX 6.90 IN MARCH (CONSENSUS 8.0 ) VS 7.78 IN FEB"