Looks like the short base has not be taken out in 10s yet...

The 10yr note yield just rose to 3.54%. Hopefully we get some short covering there and a reversal. Unfortunately this is having negative effects on "rate sheet influential" MBS coupons.

The FN 4.0 is now -0-01 at 98-12 and the FN 4.5 is trading -0-03 at 100-31 after hitting an intraday high of 101-16.

Look how steep the yield curve is now...this is getting rediculous. Buy the curve already!

IF YOUR LENDER ALREADY PUBLISHED PRICING, A REPRICE FOR THE WORSE MAY OCCUR

10:15 UPDATE: The FN 4.0 is now +0-03 at 98-16 yielding 4.156%. The FN 4.5 has recovered from the lows of the day and is now trading +0-03 at 101-05 yielding 4.356%. The secondary market current coupon is 4.276%. The current coupon is +75/10yr TSY and +58/10yr swap. Tighter on the day....with the yield curve continuing to move steeper, one has to be speculative of spread widening. (Supply/demand dynamics overriding widener at the moment).

REPRICE FOR THE WORSE ALERT OVER...FOR NOW.