Bond markets were moderately strong overnight, both at home and abroad, but the gains left Treasuries and MBS well within the narrow range that has dominated the approach of this week's big Fed meeting.  By the start of the domestic session, European and US bond markets sent the message that they were done making overnight gains.  Both German Bunds and US 10yr yields bounced excessively along their lowest levels from 8:30 to 10:30am and have been moving higher ever since.

"Higher" is a relative term here.  For instance, 10yr yields are only up from 2.164 to 2.178 currently.  So the story is more about the refusal to break through the lows than it is about any scary run higher.  MBS concur with the intraday losses being limited to 4/32nds from the highs, and even then, only temporarily.  Fannie 3.5s are back up to 103-23 vs 103-25 highs this morning.

If it was up to the traditional concept of the stock lever "stock prices and bond prices moving inversely," bonds wouldn't be so quick to avoid their best levels of the day.  Reason being: equities fell reasonably sharply at the open and have continued to leak lower from there.  but during the same time, bond markets have been drifting into slightly weaker territory as well.  Volume and volatility are too small to read much into the phenomenon at the moment.  It could be as simple as corporate issuance putting pressure on bonds and lighter liquidity into the European close.


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
100-18 : +0-04
FNMA 3.5
103-23 : +0-03
FNMA 4.0
106-10 : +0-03
Treasuries
2 YR
0.7180 : +0.0090
10 YR
2.1760 : -0.0106
30 YR
2.9460 : -0.0056
Pricing as of 9/14/15 12:48PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
11:22AM  :  ALERT ISSUED: Negative Reprice Risk Increasing
9:57AM  :  Off to a Modestly Stronger Start; Still Very Range-Bound

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  ""For refinance of previous Mortgage endorsed on or before May 31, 2009 UFMIP: 1 (bps) (.01%) All Mortgages""
Matthew Graham  :  "very easy to verify. Just open this and click PageDown 850 times: http://mndne.ws/1G38hFh"
Victor Burek  :  "if it were true, many of us would know about it, that's the first I heard that"
Jason Zimmer  :  "that's my though MG. this graph they sent out doesn't mention a date but refers to all simple refinances as well as streamlines"
Matthew Graham  :  "if previous mortgage endorsed on or before 5/31/09. "
Scott Valins  :  "Don't think so JZ"
Jason Zimmer  :  "with the new 4000.1 are all FHA to FHA refis going to .55% with .01 up front? I just read something from Caliber that says this but it is the first I've heard."