Although it's not unheard of for a lender to show up late to a "reprice-for-the-worse" party after MBS prices are noticeably bouncing back, the risks of such things do appear to be fading as Fannie 3.5's were effectively about to hold onto support at 102-22, with the exception of the 15 minute period leading up to 2pm. But that break lower now strikes the eye as a "failed breakout attempt,." Not only did prices move back over 102-22, but they fell again and bounced there as if to confirm that the level was a pivot point of at-least moderate importance today. We're not sure the recovery looks quite strong enough for any corrective reprices-for-the-better, but at least the negative risks look fairly unwound.

In the slightly bigger picture, MBS look even stronger

On the Treasury front, 10yr yields are around 3bps higher this afternoon but seemed to encounter some support from the ongoing trend channel pictured below (red line).