Here was an earlier alert from MBS Live regarding potential reprices for the better:

Potential Positive Reprices. Need More Time For Majority of Lenders12:11 PM

MBS have advanced enough to trip the trigger of our two friendly neighborhood algorithmically repricing lenders, and indeed this is always a potential clue that other lenders could reprice for the better, but one of two things will have to happen in order for that scenario to bear fruit. 

1. We'd have to hold these gains for a longer period of time. (spectrum ranges from 20min to a few hours depending on the lender). 

2. We'd have to overcome some more pronounced resistance in benchmarks as 1.98 is the 23% retracement line in TSY's from July yield lows to Sept yield lows. 1.98. This isn't out of the realm of possibility as we've rallied to 1.95-ish on recent occasions, but if 10yr yields look like they're bouncing off 1.98 as a resistance level, MBS might reconsider further gains, and thus be relegated to merely attempting to hold the 102-06 pivot. 

Too soon to say for sure re: further price improvements, but certainly, there's little reason to not be floating intraday until the situation justifies.

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Indeed, quite a few lenders ended up repricing for the better as all that "stuff" mentioned in #'s 1 and 2 above happened.  That's great and all, but then this happened!

Leading to the following alert about 15 minutes ago:

Positive Reprice Risk Gone. Neutral to Negative Now on Recent Losses 3:17PM

In the space of 15 minutes, MBS have effectively reversed most of today's gains with Fannie 3.5's moving from 102-10 to 102-03. Earlier this morning, we say prices just under 102-00, but have spent most of the day rallying to 102-10 and holding steady there--a perfect environment for reprices for the better. Many of those came across, but current market movements not only remove the possibility of any further reprices for the better, but suggest that a few lenders could reprice for the worse, with the algorithmic crowd doing so any time now, assuming prices don't magically rebound at least 4 ticks.

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Since then, MBS have bounced back some, leaving the outlook a bit cloudy as far as potential lender reprices.  Whatever the case, further reprices for the better seem highly unlikely unless the lender is acting late on earlier gains.  Ultimately, today is not extremely exciting.  Treasury benchmarks are well withint the broader prevailing range from 2.12-ish to 1.95:

MBS are also within their recent range, and given the nearness to the higher recent levels, (and the upcoming "roll"), it seems like it would take another panicky flight-to-safety in order for MBS to break current resistance seen here.

That's not a tacit supposition that we WON'T see one either.  There's still plenty up in the air over Euro-drama (apparently now Italy is the unanimous flavor of the week?).  But from a risk/reward standpoint, it looks like we may be forming an epic-scale triangle into year and, and are trading near the more bullish side right now.  Euro-drama can be positive or negative with bond-unfriendly headlines causing a bounce within the triangle and bond-friendly headlines perhaps causing a potential breakout.  Thoughts?  Questions?  Requests?  Let me know in the comments section below.