Bond markets were slightly weaker overnight and have continued into weaker territory this morning.  The landscape is simple: both stocks and bonds were increasingly at risk of a technical bounce and that is exactly what we're seeing.  The proverbial falling knife looks like it's hitting the ground.

As stocks continue to their highest levels of the session, bond yields are also at their highs of the day.  10's are up 5.4bps at 2.082.  Fannie 3.0s are down nearly a quarter of a point on the day with at least 5/32nds of that seen after the first rate sheets of the day came out.  As such, some lenders may already be considering negative reprices, although the risk would be more pronounced if we lost another 2-3 ticks.