10yr yields and MBS prices both made it to the weakest levels in 3 days--each threatening a break of technical support levels.  In terms of 10yr yields, 1.926 is the nearest important ceiling.  More broadly, it's part of a narrow band of yields stretching down to 1.90 that's served as a central point of gravity for more than a month.  10yr yields have only moved higher through this zone twice during that time, and those turned out to be the the two biggest days of selling

This morning's head-fake threatened a similar breakout, but bonds are holding their ground for now.  There has been no economic data behind the moves.  Instead, tradeflows and technicals continue to set the tone.  In that regard, there was a large, generalized move to the sidelines in multiple asset classes starting just after the CME open for Treasuries (always a clue that tradeflows are in control).  Stocks and bonds participated equally, both at home and abroad.  All that having been said, the movement is only as noticeable as it is due to low-ish volume and light liquidity.  In other words, this probably wouldn't be worth mentioning if trading was more robust.


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
102-14 : -0-03
FNMA 3.5
105-05 : -0-01
FNMA 4.0
106-30 : +0-00
Treasuries
2 YR
0.5280 : +0.0040
10 YR
1.9070 : +0.0210
30 YR
2.5770 : +0.0210
Pricing as of 4/21/15 12:53PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:56AM  :  ALERT ISSUED: Negative Reprice Risk Increasing For Some Lenders
9:38AM  :  Bond Markets Erase Early Gains on Tradeflow Move

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Ira Selwin  :  "Yeh it's part of the new fha handbook for June"
Jason Harris  :  "When does this roll? Sometime in June?"
Victor Burek  :  "one of the first smart things fha has done"
Ira Selwin  :  "The net tangible benefit test is met if: the mortgage term is reduced; the new interest rate does not exceed the current interest rate; and the combined principal, interest and MIP payment of the new Mortgage does not exceed the combined principal, interest and MIP of the refinanced Mortgage by more than $50."
Jason Harris  :  "Ira....I think that will be a big lift. I missed it but you are saying that payment iwll now be able to increase on stream as long as there is a term reduction?"
Ira Selwin  :  "Curious as I hadn't seen it mentioned - what impact do you think the reduction in term as a net tang benefit for FHA streams will have in June? "