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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 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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