MBS AFTERNOON: Yield Curve Flattening, MBS Recovering

The 10 year and the 30 year tsy's have had a dramatic recovery as stocks turn negative.  After being off nearly a point earlier in the day, the 30 yr tsy is now better than unchanged 3-4 ticks.  Trading is vigorous.  MBS trading has trailed off quite a bit.

The 4.0 continues to hold at it's popular level at 100-00.

The 4.5 is back to "base camp" territory at 101-16 with multiple bids at that level, but having a hard time getting to 101-17.

The 5.0 is right at the edge of the icy cliffs at 102-02.

If you haven't received rates yet today, floating into the afternoon makes sense.  If you were one the edge about locking, even though you still may see a reprice for the worse trail in, we're at levels now where you might also get it back.

Stay tuned