10yr yields have had 3 somewhat disconcerting bounces around 2.49 today and are now moving higher (currently up 4 bps on the day to 2.513).  The weaker momentum is spilling over to MBS with Fannie 3.5s down more than a quarter point on the day after having recovered earlier (they were only down an eighth of a point at several times over the past few hours).

A few lenders who priced near the morning highs or who are typically quicker to reprice may be considering negative reprices at these levels (Fannie 3.5 at 101-25 vs 101-30 mid-day highs).  Negative reprice risk wouldn't become widespread unless we lost at least 3 more ticks, however (3/32nds).