Good Morning All....I am skipping over the recap in the interest of time because RATES ARE MOVING HIGHER IN A HURRY THIS MORNING.

The 10yr TSY note is -0-19 at 99-30 yielding 3.384%....as you can see in the chart below, the recent rise has been rapid.

This is a function of the market finding it's way back to pre-Dubai levels, where price action was moving rates to the right in a range between 3.31% and 3.42%.  Add in some profit taking, which is an expected "window dressing event, and an attempt to price in upcoming TSY supply concessions while balancing your NFP outlook...and you get higher rates ...call it repricing for the worse in the benchmark rates market.

Of course,  because "rate sheet influential" MBS take their directional guidance from benchmark big brother TSYs, current coupon MBS prices are lower to start the session.

The FN 4.0 is -0-06 at 99-16 and the FN 4.5 is -0-06 at 101-28.....

MORTGAGE RATES WILL BE HIGHER THIS MORNING

Ugh. I have a brutal headache....for no good reason either.