Just a head up for those curious about the mid-day recovery, this is the wire that marked the turning point:
FED'S WILLIAMS - SEES NO NEED FOR URGENCY AFTER SEPTEMBER RATE HIKE
As a reminder, Williams carries more weight than most Fed speakers. This is also a more unique comment relative to other Fed speakers recently. Markets agreed--especially Fed Funds Futures and the short end of the yield curve.
MBS are still weaker on the day, but by less than an eighth now (up roughly 3/8ths from lowest levels).
10yr up only 1.8bps at 5.257
