Bond markets pressed into their strongest territory since the late August flight-to-safety this morning.  10yr yields made it as low as 2.081 before pulling up at the end of the European session.  European influences have been mostly a blessing, though, with German Bunds (Europe's 10yr benchmark) and various European equities indices making the first arguments for a widespread move away from risk.  That's another way of saying "sell stocks, buy bonds."

Global equities markets, including S&P futures followed European equities lower into the 7am hour.  European markets flat-lined at that point and domestic markets maintained the momentum.  The chart below shows the DAX (Germany's main stock index) in green and Bunds in Red, followed by the S&P (futures) in blue and the 10yr yield in yellow.

2015-9-24 10yr and friends

As can be seen in the chart, European bond traders booked profits into the close and domestic markets were pulled higher in the process.  Treasuries are also nominally wary about the upcoming 7yr Note auction--not because the auction itself is any sort of big deal, but rather because it's the last compulsory piece of debt supply this week (compulsory in that primary dealers are forced to submit bids). 


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
101-00 : +0-07
FNMA 3.5
104-03 : +0-05
FNMA 4.0
106-18 : +0-03
Treasuries
2 YR
0.6800 : -0.0230
10 YR
2.1050 : -0.0464
30 YR
2.8890 : -0.0560
Pricing as of 9/24/15 12:42PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:34AM  :  As Supply Dwindles and Data Fails to Impress, Bonds Rally, Stocks Sink

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Hugh W. Page  :  "Veteran can not pay WDO as far as I know...."
Jose Rodriguez  :  "VA Loan Pest inspection is NOT Allowed to be paid by borrower"
Justin Heinz  :  "Just got a HUD on a VA purchase and the borrower is paying the pest inspection. I ran it by my closing mgr and she says it's allowable?"
Matthew Graham  :  "RTRS- US AUG SINGLE-FAMILY HOME SALES 0.552 MLN UNIT ANN. RATE, (CONS 0.515 MLN) VS JULY 0.522 MLN UNIT RATE (PREV 0.507 MLN)"
Matthew Graham  :  "definitely "
Hugh W. Page  :  "Stock lever in play this morning perhaps? "
Matthew Graham  :  "RTRS - US AUG DURABLES ORDERS -2.0 PCT (CONSENSUS -2.0 PCT) VS JULY +1.9 PCT (PREV +2.2 PCT)"
Matthew Graham  :  "RTRS- US JOBLESS CLAIMS ROSE TO 267,000 SEP 19 WEEK (CONSENSUS 271,000) FROM 264,000 PRIOR WEEK (PREVIOUS 264,000)"
Hugh W. Page  :  "The assault on 2.10. Let the games begin. "