MBS have fallen a few quick ticks and Treasury yields are up to the highest levels of the afternoon after fresh reports that Japan will announce that it is doubling its fiscal spending from 3 trillion yen to 6 trillion on the fiscal side (i.e. from the government itself and not from the Bank of Japan).
To say that this news is at the "rumor" level at the moment is an understatement. It may well be denied by officials in short order. It would likely be leading to bigger market movement if confirmed. For now, it has US 10yr yields up 1bp at 1.577 and Fannie 3.0 MBS down 2 ticks at 103-15.
There's no major increase in reprice risk with these losses. It would take another few ticks of weakness for that to even begin to change.
