If you have not yet seen reprices for the worse, they're likely on the way after an unexpectedly weak 10yr TIPS auction jolted "rate sheet influential" benchmarks through a band of support levels.

We usually don't track TIPS auctions as they historically have very little correlation to MBS movements, but when cash market trading flows are thin and day traders gain control of the futures market...anything can move the market, especially a 6bp tail in a Treasury auction.  And that's what is happening at the moment as the 10yr note have broken through 3.42% support and FNCL 4.5's have fallen below 102-00. 

We feared reprices for the worse with a sub 102-00 4.5 coupon, and this is unfortunately proving to be a well-founded fear as several lenders are already in with reprices for the worse.  But just like the freeway signs say "if you lived here, you'd be home by now," something similar could be said of the new MBSonMND dashboard.  If you lived there, you'd be locked by now...

With the help of MND's community of awesome originators, we had been discussing the potential for reprices since the 11am hour. As seen in THIS POST  as well in MBS microposts.

Follow THIS LINK for more info on the MBSonMND Live Dashboard