More Reprices Possible as Short Sellers Take Over. MBS Drift Lower and Wider

By: • Wed, Jan 5 2011, 2:55 PM

Bargain hunters have parked their wallets and moved to the sidelines and sellers are making their presence known in the "rate sheet influential" belly of the yield curve. Bid wanted!

10s are rapidly approaching 3.50% and the FNCL 4.5 is trading below 102-00. If you haven't gotten a reprice for the worse yet, you will soon. If you've already received a reprice for the worse, you might see another!