MBS ALERT: Reprice for Worse Possible

• High yield 1.377 pct, awards 26.75 pct of bids at high
• Bid-to-cover ratio 2.83, non-comp bids $156.7 mln
• Primary dealers take $15.42 bln of 3-year notes sale, indirect $20.37 bln

We're down 6 ticks since the auction so far, and falling.

Reprice risk is high at the moment