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Heading into the after hours session, the FN 4.0 is +0-05 at 99-17 yielding 4.053% and the FN 4.5 is +0-05 at 101-30 yielding 4.263%. The secondary market current coupon is 4.095%. The CC is +73/10yr TSY and +61/10yr swap. Several lenders have repriced for the better as price improvements have held since the choppy reaction the 2 yr note auction. In the MBS market, trading flows have been slow and volume below average. "Rate sheet influential" yield spreads are marginally tighter as supply from originators has been muted. As the FN 4.5 tests the 102 price handle expect to see profit taking pick up...especially when benchmarks are benefiting from a bid (offers getting lifted). All this means is we dont expect to see MBS prices venture too far into the 102-00 price handle (without spreads...