Nothing new or exciting has happened since the jobs report this morning, but bonds have been selling to progressively weaker levels, even if the pace is super slow. With each tick lower in MBS, negative reprice risk increases incrementally. Lenders who priced in line with the market this morning are just now seeing an eighth of a point of weakness and could thus technically consider negative reprices.
Other lenders tend to price a bit more conservatively on mornings like this and thus could need to see a bit more weakness before getting into reprice risk territory.
MBS are down a total of 11 ticks (.34) on the day and 10yr yields are up 9.1bps at 4.486. Both are the weakest levels of the day.
Nothing new or exciting has happened since the jobs report this morning, but bonds have been selling to progressively weaker levels, even if the pace is super slow. With each tick lower in MBS, negative reprice risk increases incrementally. Lenders who priced in line with the market this morning are just now seeing an eighth of a point of weakness and could thus technically consider negative reprices.
Other lenders tend to price a bit more conservatively on mornings like this and thus could need to see a bit more weakness before getting into reprice risk territory.
MBS are down a total of 11 ticks (.34) on the day and 10yr yields are up 9.1bps at 4.486. Both are the weakest levels of the day.