Stocks have turned positive on the day and finally with a reasonable measure of vigor. The Dow is up 45 points currently at 8170, after falling as low as 8087 from an 8125 open.
Treasuries have not liked this much at all with the 5yr down 17 ticks and the 10 yr down 27 ticks. The yields are 1.885 and 2.93 respectively.
MBS has continued its trend of dramatic tightening on dramatic treasury weakness. The 4.0 (probably our most closely related coupon to the 10yr in terms of duration) is only down 9 ticks (compared to 10yr's 27 ticks) and the 4.5 only down 6 ticks.
We have however, pushed to new lows on the day, and broken through our teal "cool dude" line for the 2nd time. Now making an appearance on the chart is the hugely important red line. It won't be a definitive break if we go below that line today as it would require confirmation on monday, but it would certainly be an immediate "2 strikes" making any further weakness on monday a potential nail in the coffin. Reprices for the worse are a risk we now run today, but be aware some lenders may have hedged for this data-sparse and volatile Friday. Here's what it all looks like on the chart: