A noncommittal, sideways grind only has so much noncommittal and sideways in it before breaking out.  This one was already overdue and already showing signs that it was on its last legs (especially with respect to the technical bounce threat in Europe and the suggestion from Pending Home Sales that this morning's Existing Home Sales data might be even stronger than expected).

Bonds were already on the run by the time Existing Home Sales came out.  Europe was clearly leading the charge there, though corporate bond market hedging was also taking a toll.  Sales indeed came out much stronger than expected (5.19 mln vs 5.03 mln forecast and 4.89 previous).  After that, the selling picked up as bonds confirmed technical breakouts and followed through to the next support zone near 1.98.  In the chart below, the blue line is the 25 day moving average and the sickly yellow line is the 100 day.

2015-4-22 10yr

MBS aren't selling off quite as abruptly, but are nonetheless off just over a quarter of a point.  Much of that was seen after the morning's first rate sheets, making for negative reprices from multiple lenders so far.


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
102-04 : -0-09
FNMA 3.5
104-32 : -0-05
FNMA 4.0
106-30 : -0-02
Treasuries
2 YR
0.5490 : +0.0290
10 YR
1.9730 : +0.0630
30 YR
2.6550 : +0.0710
Pricing as of 4/22/15 12:55PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:30AM  :  ALERT ISSUED: Negative Reprice Risk Increases as Technical Break Runs Its Course
10:02AM  :  ALERT ISSUED: First Move After Home Sales Data is Weaker
9:34AM  :  ALERT ISSUED: Europe Corporate Debt Hitting Bonds; Maybe Even Some Reprice Risk

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "seasonally adjusted"
Michael Gillani  :  "Isn't it natural for existing home sales to pick up considerably in the spring?"
Matthew Graham  :  "RTRS- U.S. MARCH NATIONAL MEDIAN HOME PRICE FOR EXISTING HOMES $212,100, +7.8 PCT FROM MARCH 2014"
Matthew Graham  :  "RTRS- U.S. MARCH INVENTORY OF HOMES FOR SALE 2.00 MLN UNITS, 4.6 MONTHS' WORTH"
Matthew Graham  :  "RTRS- U.S. MARCH EXISTING HOME SALES +6.1 PCT VS FEB +1.5 PCT (PREV +1.2 PCT)-NAR"
Matthew Graham  :  "RTRS- U.S. MARCH EXISTING HOME SALES 5.19 MLN UNIT RATE (CONSENSUS 5.03 MLN), VS FEB 4.89 MLN (PREV 4.88 MLN)-NAR"
Matthew Graham  :  "RTRS- U.S. HOME PRICES +5.4 PCT IN 12 MONTHS THROUGH FEBRUARY - U.S. REGULATOR"
Matthew Graham  :  "RTRS- U.S. HOME PRICES +0.7 PCT IN FEBRUARY FROM JANUARY - U.S. REGULATOR"
Ryan Bier  :  "the ominous low open only to spike to 1.93 in 5, 4, 3, 2, 1......"