Global markets' courtship phase with China's currency devaluation continued benefiting Treasuries overnight.  While there was a slow, steady move back toward higher yields during the European session, it ended abruptly at 10am after a lackluster JOLTS report (Job Openings and Labor Market Turnover Survey).  JOLTS isn't normally a market mover, and it may not have been much of a market mover today, but it was the only salient data out at 10am when bonds began to rally.  So it would be hard for someone to argue otherwise.

For all the pleasantness of bouncing back to the day's stronger levels, the 1pm 10yr Auction has just recently sent us back toward weaker levels.  In both cases, things have been well-contained by the day's previous highs and lows, but it creates some concern over negative reprices for the lenders that priced (or repriced) near the day's better MBS levels.


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
100-24 : +0-05
FNMA 3.5
103-28 : +0-05
FNMA 4.0
106-13 : +0-04
Treasuries
2 YR
0.6450 : -0.0320
10 YR
2.1160 : -0.0270
30 YR
2.8070 : -0.0030
Pricing as of 8/12/15 1:18PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:25AM  :  Positive Shift After JOLTS; Good Lines in Sand for MBS
10:00AM  :  We Now Join The Correction Already In Progress

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Sung Kim  :  "sorry, i was doing my victory dance"
Matthew Graham  :  "where's SK to claim victory?"
Sung Kim  :  "we cannot claim victory until 2.09"
Matthew Graham  :  "yes, erased at least a week of increasing rate-hike probability. Not epic, but noticeable "
Victor Burek  :  "has fff moved on the yuan move?"
Andrew Horowitz  :  "they really want to raise, keep saying they think they can, they think they can...but with this Renmimbi (Yuan) move really ties them in knots"
Matthew Graham  :  "That's an interesting comment. According to many metrics, we already have a strong, stable recovery. Maybe he should have said "as soon as inflation and wages fall in line with headline payroll growth...""
Matthew Graham  :  "RTRS- FED'S DUDLEY: THE SOONER WE GET A STRONG, STABLE U.S. ECONOMIC RECOVERY, THE SOONER WE CAN RAISE INTEREST RATES"
Matthew Graham  :  "RTRS- FED'S DUDLEY SAYS PROBABLY NOT INAPPROPRIATE FOR CHINESE YUAN TO ADJUST"
Matthew Graham  :  "RTRS - FED'S DUDLEY SAYS WHAT IS GOING ON WITH CHINESE YUAN HAS HUGE IMPLICATIONS FOR REST OF WORLD DEMAND, COMMODITY PRICES"