After an exceptionally strong morning, bond markets are losing ground heading into the afternoon. The move
10yr yields are just over 3bps off their lows and Fannie 3.0s are down 4 ticks (.125) from the highs. This is threshold of negative reprice risk, and the most reactive/aggressive lenders could already be considering it. Risks would increase incrementally below 102-05 in Fannie 3.0 MBS, with 102-02 being the point at which reprices become probable.