MBS are at the lows of the day with 5.5 coupons down over an eighth of a point from AM highs. This is the threshold of negative reprice risk for the average lender.
10yr yields are up 5.5bps to the highs of the day at 4.667.
Several potential factors could be in play, including another uptick in oil prices, and risk parity trading hitting stocks and bonds simultaneously, but most recently, a report that the shipping industry sources say the proposed Hormuz deal is not feasible.
