We were hoping it wouldn't happen, but now it has. Bonds have broken beyond the day's previous lows with Fannie 3.5 MBS now down 9/32nds on the day to 102-11. This is more than an eighth of a point from some lenders' rate sheet print times. 10yr yields are also at the weakest levels of the day, up 6.2 bps at 2.389.
This alert applies mainly to early/aggressive lenders. It would take several more ticks of weakness for the average lender to consider repricing.