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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 5.5
99.11
+0.39
UMBS 6.0
100.61
+0.22
UMBS 6.5
101.99
+0.18
2 YR
4.6035
-0.1128
10 YR
4.2818
-0.0784
Pricing as of: 7/5 5:59PM EST
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