• 10yr yields hit 1.697 today, matching last Friday's best levels--the lowest since April 7th
  • Less than 2bps of movement all day though!
  • Fannie 3.0s rose an eighth to 102-31
  • European corporate bond buying did nothing much
  • 10yr auction was well-received, but didn't move markets
  • What will move markets?

Things are getting tedious in bond markets, but at least in a good way.  Yields are grinding in a narrow range around their lowest levels of the year.  Only 4 days have seen any lower this year, with the most recent being 2 months ago on April 7th. 

We may well have seen more volatility today with the roll-out of the European corporate bond buying program, but it ended up having no net impact by the end of the day.  Perhaps traders just did THAT good a job of pricing its effects in, or perhaps its effects are yet to be fully seen.  Only time will tell.

Unless something else jumps out at us between now and then, next week's FOMC Announcement seems like the next focal point for volatility.  Having said that, I would say that almost any time we've looked that far into the future for the "next big thing," markets end up moving sooner for some unforeseen reason.  We'll see...

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
102-31 : +0-04
Treasuries
10 YR
1.7040 : -0.0090
Pricing as of 6/8/16 5:11PMEST
Today's Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:55AM  :  Limited Impact From Europe, But Buyers Still Surface
MBS Live Chat Highlights
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Michael Ullmann  :  "OO: wow you are right, thank you. For fun I will fight this on my next deal"
Joel Marks  :  "just found out Chase jumbo no longer requires landlord experience to count rental income from a departing residence (just an extra six months of reserves). That's a major change."
Oliver Orlicki  :  "That is an overlay"
Oliver Orlicki  :  "Dont need to show deposit any more"
Caroline Roy  :  "75% of lease, need first month's rent OR deposit in the bank"
Jason York  :  "anyone have a link for the guides on being able to use rental income on vacating a primary to make it a rental?"
Matthew Graham  :  "RTRS - SHARE OF INDIRECT BIDDERS PURCHASE AT LATEST U.S. 10-YEAR NOTE SALE LARGEST ON RECORD"
Matthew Graham  :  "RTRS - INDIRECT BIDDERS BUY 73.63 PCT OF LATEST U.S. 10-YEAR TREASURY NOTE SUPPLY; DIRECT BIDDERS 7.15 PCT; PRIMARY DEALERS 19.21 PCT"
John Tassios  :  "I'll take a B considering no price concessions"
Matthew Graham  :  "B"
Matthew Graham  :  "RTRS - U.S. 9-YR 11-MO NOTES BID-TO-COVER RATIO 2.70, NON-COMP BIDS $12.05 MLN"
Matthew Graham  :  "RTRS - U.S. SELLS $20 BLN 9-YR 11-MO NOTES AT HIGH YIELD 1.702 PCT, AWARDS 11.21 PCT OF BIDS AT HIGH"
Matthew Graham  :  "10yr auction expectation is currently 1.706 based on when-issued trading at 1pm, Average bid to cover has been 2.66, and the average auction comes in about half a bp under the when-issued level. Indirects take just over 62%. (Treasury Auction Jargon, Definition, and Significance if needed)"
Matthew Graham  :  ""Hey Everyone, Rates are still in the mid to high 3's. Cheers, MG.""