MBS ALERT: REPRICES FOR WORSE POSSIBLE

The bond market is losing steam ahead of the 1pm bid cut off for $32 billion 7 year notes.

The 10 year Treasury note is trading at 3.89%. This pushed the FN 4.5 hit to a new intraday low of 99-30. This is 9 ticks below the morning price highs...

PARNERTIA AT WORK!

Reprices for the Worse are Possible!

This was not unexpected ahead of more debt supply...the true test of the bond market's sentiment will come in the hours/days that follow.

NEXT EVENT: $32 billion 7s at 1pm