MBS AFTERNOON ... Volatility Much?

FN 5.5 30YR MBS = 100-00  .... -0-13 (13 ticks)

Although lenders likely hedged for volatility, those that prices at the 100-04 level that held from 10AM to noon may be spooked just a bit by the selling that has taken place in the last 30 minutes which has bought us down to near par.

Slight chance of a reprice for the worse.  Trading is choppy from minute to minute.  An intraday float may make sense, but this boat is likely rocking too much to take risks with short term deals.  Unless something changes the broad tenor of the marketplace, MBS don't have a lot to be happy about between now and the end of the year.