The early morning hours for US bond markets were somewhat disheartening as gains steadily evaporated into the 10am hour.  Up until that point, it looked as if markets priced in the worst case scenario and gradually calmed down from there.  But starting at 10am, calmness faded abruptly as equities began giving up in their attempt to push off the opening lows. 

The mass exodus in stocks has benefited bonds, with both MBS and Treasuries in a linear, positive trend since then.  Both are also at their best levels of the domestic trading session.  For Fannie 3.5s, that's 21 ticks higher at 102-28. 

10yr yields are down 13bps at 2.344 (overnight lows were 2.292 right at the start of European bond futures trading).  Current levels are roughly in line with the early overnight levels in terms of Treasuries.  If you didn't see that chart, the moral of the story is that today's rally is strong, but not yet enough to challenge either trend:

2015-6-29 Treasury Trends

The day is still young though, and if equities markets continue their trend of 'abandon-all-hope' selling, anything is possible.  That money needs somewhere to go!  It makes more sense to keep it on this side of the Atlantic today.


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
99-14 : +0-25
FNMA 3.5
102-29 : +0-21
FNMA 4.0
105-27 : +0-16
Treasuries
2 YR
0.6410 : -0.0750
10 YR
2.3400 : -0.1344
30 YR
3.1110 : -0.1309
Pricing as of 6/29/15 2:19PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:12AM  :  Reprice Risk Wanes as Bonds Bounce Back
9:54AM  :  ALERT ISSUED: Bond Markets Begin Unwinding Overnight Gains; Early Negative Reprice Risk

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Steve Chizmadia  :  "The more we bounce off this level and the more the bund rejects going below .75ish, the more concerning it is IMO"
Matt Hodges  :  "play defense guys...its our borrower's rates and homes"
Jeff Anderson  :  "Exactly, Chiz."
Steve Chizmadia  :  "We moved from the top of the range back to the middle of the range and the long term inflection point in the 10 yr just under 2.38. "
Matt Hodges  :  "i stand by the comment...Greece helped us a bit today, but it isn't a driving force behind our bond yields (longer term, i'll add)"
Michael Baker  :  "MH, what then would be driving a +15 on the 3.0 coupon?"
Matt Hodges  :  "Greece helped us a bit today, but it isn't a driving force behind our bond yields"
Matthew Graham  :  "RTRS - GREEK GOVERNMENT OFFICIAL SAYS GREEK BANKS TO REOPEN ON THURSDAY, EARLIER THAN PLANNED"