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Fannie 3.0s just hit their highs of the day, up 2 ticks at 104-06. Depending on when lenders printed initial sheets, this could be enough for some to consider positive reprices, but we're still in the early moment of the rally.

The move to the upside follows the resolution of competing trends in broader bond markets that's seen 10yr yields move back below 1.90. German Bunds wrapped up trading at Noon EST and US 10's broke from their indecisive range trade shortly thereafter.

All of this movement is occurring in a wider range, with much bigger participation near the highs and lows. So we can't draw any big picture conclusions from the current amount of green on the screens (the only conclusion today was that 10's bounced supportively at 1.928 and that Europe suddenly "matters" again). But even if it's only a swim in the pool on a cruise ship heading the wrong direction, the water feels good today.

Overnight low yields in 10's are 1.88. If we make it below there, we'll talk again. For now, moderate positive reprice risk and no change to bigger-picture defensiveness heading into the weekend.

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