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Stocks are surging and bond markets have quickly weakened--several ticks in MBS and 1.5 bps in Treasuries after Bloomberg reported that Obama will offer a Cliff Deal Compromise to Congressional leaders today. These aren't big moves in and of themselves, but could be the beginning of further momentum. Reprice risk is moderately higher for lenders who were already out with rates, though a lot depends on the follow through trade that we may or may not see shortly.

Please note: for almost any lender, this alert is an early warning that markets are experiencing some turbulence. It could settle back down or it could materialize into more substantial reprice risk. MBS are still in their AM range for now, but stocks and Treasuries are suggesting they break to the downside, and soon.

More from MND:

• MBS Commentary: MBS RECAP: Technically an Early Close, but Buyers Never Showed Up
• Mortgage Rate Watch: Mortgage Rates Hold Steady Ahead of 3-Day Weekend
• MBS Commentary: MBS MID-DAY: Negative Reprices in the AM: Breakfast of Champions
• MND NewsWire: Delinquency Rate Hits Post Housing Crisis Low for Freddie Mac
• Pipeline Press: Government Furlough Days; H.R. 1077's Impact on QM And 3% Limit; MBA on GSE risk sharing

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