Any time we fall to the lows of the day, there is reprice risk...  Now would be one of those times...

The mitigating factor here is that tsy's have not had a similar sell-off.  So a reasonable portion of the weakness, for the moment, is likely artificial and may pass .  Take a look at 10yrs and stocks.

Moral of the story: don't rush to lock medium to long term deals on this one, and even short term deals might want to wait until tsy's break 3.51 on the upside (IF they break it).  More than anything, we wanted to let you know that prices had fallen to the lows of the day.  Considering spread levels, even quarter end should not disuade some value buying of MBS if tsy's hold steady.  You got me?  I'd wait until further notice...  Especially if tsy's turn around...