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MBS Quickly Down to New Lows; Reprice Risk

Almost immediately following the Fed's last buying operation of the day, MBS began tanking.  They're now visibly distressed about the supply/demand equation with decreased Fed buying (and perhaps increased supply after heavier locks in recent days. 

2.5 coupons are down nearly half a point at 104-01 (104.03).  Negative reprices are possible for most any lenders, but probability will depend on the lender.

MBS / Treasury Market Data

UMBS 5.5
98.72
+0.25
UMBS 6.0
100.39
+0.19
UMBS 6.5
101.81
+0.11
2 YR
4.7163
-0.0249
10 YR
4.3602
-0.0724
Pricing as of: 7/3 5:59PM EST
This Mortgage Market Alert is provided in partnership with MBS Live and provided exclusively to MBS Live Subcribers.