Spreads aren't looking any nicer and probably won't unless Fannie Mae comes out better than expected tomorrow, but the "tension" in the leash between treasuries and MBS is all but exhausted, so MBS can't help but reluctantly march upward as treasuries skyrocket.
The 6.0 is up 11 ticks at 99-28. We're feeling floaty until FNMA news tomorrow. As far as locking tonight for safety, we'll be back after researching the level of certainty with which we could get you out of the market should FNMA cause the sky to fall. If we'll be able to see it coming far enough off, safe to float... If not, we'll advise the risk-averse path would be locking tonight as long as your lender has hit you with some decent price improvements by this afternoon.
Stay tuned.