MBS ALERT: Initial Reaction To Auction Is Negative

By: Matthew Graham

Savvy, ahead-of-the-curve type lenders may reprice for the worse here.  The auction results are apparently not quite what the markets were expecting.  Tsy's and MBS selling off with a vengeance as MBS now 1 tick down on the day all across the board.  10yr tsy heading to 3.5.  If it gets a bounce there, we could squeek by today, but so far, no so good.  Lock accordingly...

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