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Negative Reprice Risk Increasing

Treasury weakness has continued from the time of the last alert as a procedural hurdle to avoid the government shutdown has been cleared.  

10yr yields are now up more than 2bps to 2.362 and Fannie 3.5 MBS are down 1 tick on the day (3/32nds from some lenders' rate sheet print times) to 102-28).  Some lenders may be spooked enough by this movement to consider negative reprices now.  Others may begin to consider reprices if we lose another tick or two.

MBS / Treasury Market Data

UMBS 6.0
99.43
-0.62
UMBS 6.5
101.30
-0.42
10 YR
4.9860
+0.0952
Pricing as of: 11/10 5:59PM EST
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