Bond markets continued to do the exact same thing they've been doing all year: follow stocks/oil.  Today was the first day of the year that stocks had 2 consecutive winning days.  Yesterday's winning day was a minor inconvenience for bonds, but today's move in stocks was much bigger.  As such, it's no surprise to see bonds taking a bit of a bigger hit.

10yr yields came into the domestic session over 2.07 and were as high as 2.089 by mid-morning.  After European markets closed, bonds were able to gain some traction and end the day with 10yr yields only 2.9bps higher.  Fannie 3.0s were only 3 ticks weaker by the close, but lender rate sheets belied the gentleness of the secondary market's adjustments (i.e. rate sheets got hit a bit harder than MBS prices would have suggested).

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 3.5
104-01 : +0-01
Treasuries
10 YR
2.0570 : +0.0380
Pricing as of 1/22/16 6:23PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
9:59AM  :  ALERT ISSUED: Bonds At Weakest Levels Ahead of Existing Sales Data
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Timothy Baron  :  "Sucks the other lender didn't send it back to you, CS."
Ted Rood  :  "I had a similar situation, CS. Dad, the occupant, forgot he had quit claimed title to his daughters, then wrote sales contract to sell his house. Neither agent bothered to check ownership in county records. Had to q/c back into Dad's name. Other lender said "that's not a flip per FHA", and closed before 90 days. Guessing they ended up eating that one."
Clayton Sandy  :  "I've had it go the other way and I got my answer from FHA. Had a guy buy a home, fix it up and in the middle of the process, transfer it to his LLC. FHA said we had to wait another 91 days to close. Had a lender tell me they could do it without it. Handed the file over and then looked a few months later. They had to wait the 91 days before they closed."
Clay Schmeisser  :  "hey guys - got a response back from a Plaza UW about the 91 day flip question I had - "Per UW, the property flip would go off the actual sale in 9/2015. The more recent transfer was only a transfer between borrower’s legal entities/business/corporations." They are using the actual sale date to determine the 91 days, as it should be in my opinion."