Causality to be determined shortly,

more pressing is the 5 tick drop in 5.5's to 100-26+.

Lenders living in the "here and now" may reprice an eighth for the worse while the bulk will want to see these lower prices hold for a while longer before repricing.

We remain long on MBS short term, but as always, uber-short termers always have the lowest possible risk by locking on losseslike these.

(btw in the 45 seconds it took to type this, we're back up to 100-29+, so reprices from most lenders are still unlikely... Only the most aggressive will be considering repricing.