10yr yields just broke above the important technical level at 1.66% with the biggest volume surge of the week. Frustratingly enough, there was no overt reason for the move (apart from momentum/technicals/tradeflows).
Fannie 3.0 MBS are down 3 ticks (0.09) on the day, but as many as 5 ticks (.16) from some lenders' rate sheet print times. Granted, most lenders priced conservatively enough as to not be phased by a 5 tick decline, but some may be considering an early negative reprice simply due to the broader momentum implications (i.e. a high volume move over a key technical ceiling with no other provocation).
