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Modestly stronger overnight. MBS up 1 tick (.03) and 10yr down 1.4bps at 4.036
weaker in the early trading. MBS down 1 tick (.03) and 10yr up 0.7bps at 4.055
Weakest levels. MBS down 2 ticks (.06) and 10yr up 1bp at 4.058
heading out fairly flat. MBS down 1 tick (.03) and 10yr up 1.1bps at 4.059
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MBS are down 6 ticks (.19) from the AM highs. This is typically more than enough for negative reprices, but the caveat is that those highs only lasted about an hour and most lenders didn't publish rates during that time.
As such, the average lender is only seeing about 3 ticks (.09) of weakness, thus making negative reprices less of a risk.
Nonetheless, bonds are at their weakest levels and 10yr yields are up 1bp at 4.058.