Bonds had recovered from overnight weakness fairly well heading into the 10am hour with both MBS and Treasuries nearly hitting unchanged levels. Selling picked back up at 10:30am and UMBS 5.5 coupons are now down 6 ticks (.19) from the mid-morning highs, and 9 ticks (.28) on the day.
Lenders who priced later in the morning (near the time of the highs in the 10am-1030am time frame) could technically justify a negative reprice.
10yr yields are up 5bps at 4.377.
