Stocks have given back early session gains and "rate sheet influential" MBS coupon prices just hit new session highs. The October FNCL 4.0 MBS coupon is +0-05 at 102-08 and the FNCL 4.5 is +0-05 at 104-01. Production MBS coupon yield spreads tightened early in the day but have since gapped out, back to unchanged vs. benchmarks.

Loan pricing is 16.4bps worse on average at the five majors. With the October FNCL 4.0 8 ticks off the session lows, some lenders may reprice for the better, especially on note rates between 4.00% and 4.625%

HOW MUCH MBS RALLY DOES IT TAKE FOR LENDERS TO REPRICE FOR THE BETTER?