We've seen a few positive reprices come across as Fannie 3.0s finally get with the program in terms of catching up to yesterday's better levels at 103-00. Treasuries were already back at theirs (1.96) and may already be experiencing some technical resistance to further improvements.

As such, we can't necessarily expect the rally to continue, but for now, making it back to 103-00 has been enough of a move for a few lenders and others may be considering reprices as well. It would take another 2-3 ticks to get a majority on board, however.

The European hours delivered in terms of providing plenty for overnight Treasuries to consider, even if that's more about following analogous European metrics like German Bunds. The yields of both moved higher at the start of the European session, helped along by stronger economic data out of Germany and Italy.

The selling was moderate and was completely reversed when the ECB released another installment of the LTRO repayments (the stuff that caused the big nasty sell-off on 1/25). This time it was lighter than expected, but not to such an extent that it reversed even a small portion of the sentiment created by 1/25.

MBS and Treasuries crossed into 8am at slightly weaker levels and had some sideways choppiness, driven by tradeflows, but which has now resolved itself with a move back toward unchanged levels. Fannie 3.0s are currently up 1 tick at 102-29 and 10's are +0.0018 as we wait to see if the cash open for stocks will have any input on this otherwise data-free US session.

We've seen a few positive reprices come across as Fannie 3.0s finally get with the program in terms of catching up to yesterday's better levels at 103-00. Treasuries were already back at theirs (1.96) and may already be experiencing some technical resistance to further improvements.

As such, we can't necessarily expect the rally to continue, but for now, making it back to 103-00 has been enough of a move for a few lenders and others may be considering reprices as well. It would take another 2-3 ticks to get a majority on board, however.

The European hours delivered in terms of providing plenty for overnight Treasuries to consider, even if that's more about following analogous European metrics like German Bunds. The yields of both moved higher at the start of the European session, helped along by stronger economic data out of Germany and Italy.

The selling was moderate and was completely reversed when the ECB released another installment of the LTRO repayments (the stuff that caused the big nasty sell-off on 1/25). This time it was lighter than expected, but not to such an extent that it reversed even a small portion of the sentiment created by 1/25.

MBS and Treasuries crossed into 8am at slightly weaker levels and had some sideways choppiness, driven by tradeflows, but which has now resolved itself with a move back toward unchanged levels. Fannie 3.0s are currently up 1 tick at 102-29 and 10's are +0.0018 as we wait to see if the cash open for stocks will have any input on this otherwise data-free US session.