For lenders who are already out with rate sheets today, reprices for the better are a possibility on recent MBS gains to 101-24 in 4.5's. But in most cases, it's still a bit early for that, and some lenders may need further gains before repricing though. Benchmark 10's are currently doing well with respect to their pivot point at 3.45, right now at 3.442.

10yr notes are still dancing around 3.45 while FNCL 4.5's maintain 101-22 levels following Consumer Sentiment's better than expected print. This is a promising sign for bonds being able to hold support today as it occurs during a stock rally.. S&P's moved from 1313 to 1317 in the same time.

*** US CONSUMER SENTIMENT FINAL FEB 77.5 (CONSENSUS 75.3) VS PRELIMINARY FEB 75.1 *** CURRENT CONDITIONS INDEX FINAL FEB 86.9 (CONSENSUS 86.8) VS PRELIMINARY FEB 86.8 *** CONSUMER EXPECTATIONS INDEX FINAL FEB 71.6 (CONSENSUS 68.0) VS PRELIMINARY FEB 67.6 *** 12-MONTH ECONOMIC OUTLOOK INDEX FINAL FEB 85 VS PRELIM FEB 78 *** 1-YEAR INFLATION OUTLOOK FINAL FEB 3.4 PCT VS PRELIM FEB 3.4 PCT *** 5-YEAR INFLATION OUTLOOK FINAL FEB 2.9 PCT VS PRELIMINARY FEB 2.9 PCT *** CONSUMER SENTIMENT INDEX AND CURRENT CONDITIONS INDEX BOTH AT HIGHEST SINCE JAN 2008 *** CONSUMER EXPECTATIONS INDEX AT HIGHEST SINCE SEPT 2009

Consumer Sentiment will be released at 955am. Heading into that data, the 10yr note has seen some support from it's short term pivot at 3.45 and is currently at 3.4402. FNCL 4.5's ar about half a tick better at 101-22 but have gone no higher so far today, and no lower than 101-19. We'd be looking for either that high or low to break on any pronounced reaction to data. If it breaks higher and maintains, then reprices for the better are possible for lenders already out with pricing. If it breaks lower than 101-19, those same lenders would be more likely to reprice for the worse depending on the severity of the break.

10yr notes reached 3.47 earlier this morning, but improved following the release of the GDP revisions. However, they find themselves currently battling a short term pivot point at 3.45 which was supportive yesterday morning and resistant yesterday afternoon and earlier this morning. We've seen a couple bounces, but at 3.4457, we could be seeing that resistance give way. FNCL 4.5's have been boring by comparison, moving very little from their current 101-21+ price, which is unchanged on the day. Consumer Sentiment still to come at 9:55am.

*** PRELIM Q4 GDP +2.8 PCT (CONSENSUS +3.3 PCT), PREV +3.2 PCT; FINAL SALES +6.7 PCT (CONS +7.2 PCT), PREV +7.1 PCT *** PRELIM Q4 GDP DEFLATOR +0.4 PCT (CONS +0.3 PCT), PREV +0.3 PCT *** Q4 PCE PRICE INDEX +1.8 PCT (CONS +1.8 PCT), PREV +1.8 PCT; CORE PCE +0.5 PCT (CONS +0.4 PCT), PREV +0.4 PCT *** Q4 CONSUMER SPENDING +4.1 PCT (PREV +4.4 PCT), DURABLES +21.0 PCT (PREV +21.6 PCT) *** Q4 MARKET-BASED PCE PRICE INDEX +1.9 PCT (PREV +1.9 PCT), CORE +0.4 PCT (PREV +0.3 PCT) *** Q4 BUSINESS INVESTMENT +5.3 PCT (PREV +4.4 PCT), EQUIPMENT/SOFTWARE +5.5 PCT (PREV +5.8 PCT) *** Q4 HOME INVESTMENT +2.8 PCT (PREV +3.4 PCT), BUS. INVESTMENT IN STRUCTURES +4.5 PCT (PREV +0.8 PCT) *** Q4 EXPORTS +9.6 PCT (PREV +8.5 PCT), IMPORTS -12.4 PCT (PREV -13.6 PCT) *** Q4 GDP EX MOTOR VEHICLES +3.2 PCT (PREV +3.6 PCT) *** Q4 YEAR-ON-YEAR PCE PRICE INDEX +1.2 PCT (PREV +1.2 PCT), CORE PCE +0.8 PCT (PREV +0.8 PCT) *** Q4 BUSINESS INVENTORY CHANGE +$7.1 BLN (PREV +$7.2 BLN) *** Q4 BUSINESS INVENTORY CHANGE CUTS 3.7 PERCENTAGE POINT FROM GDP CHANGE

We'll get a better idea today about whether or not the recent bond market rally has been totally a factor of a flight to safety or if there really are legs under a potential shift in investor attitudes. Equity futures are on the mend following a three-day sell-off that has pushed the Dow Jones Industrial Average down 323 points. “For the first time in days, there seems to be an aura of calm in financial markets,” said analysts at BMO Capital Markets, noting that European bourses are rallying up to 1% and nearly all Asian markets closed the week higher. S&P 500 futures are up 8.5 points to 1,311.20 and Dow futures are trading 78 points higher at 12,115. Light crude oil turned back to double-digits yesterday as Saudi Arabia started to boost production and reports from the middle-east said the ongoing political turmoil hadn’t disrupted production. Light crude is currently down 0.14% to $97.06 per barrel. Gold prices are 0.30% higher at $1,405.70 per ounce. The 10-year Treasury traded with a yield of 3.44% and 3.47% overnight, after falling by five basis points to close at 3.44% yesterday. Benchmark 10s are currently -5/32 at 101-10+ yielding 3.466%. The FNCL 4.5 MBS coupon is -2/32 at 101-20.