Despite a reasonably strong 10yr Treasury auction, bonds have drifted to the weakest levels of the day. 10yr yields are now up 4.3bps at 4.264. MBS are back down to 'unchanged' levels, just a bit below the levels seen after our first alert of the day.
Negative reprices are getting to be a bigger risk now with most lenders seeing at least an eighth point of weakness since rate sheet print times.
