Edging Up Into Positive Reprice Territory
As striking as the gains on the screen may seem, the +19 ticks day-over-day is only now reaching +4 ticks from rate sheet print times, and even then, only for a few earlier lenders.
That puts us right on the doorstep of positive reprice potential for those few lenders, but given the relatively conservative rate sheet offerings, it wouldn't be too surprising to see a "stability reprice" or two if we simply hold current levels.
There's nothing significant behind the incremental gains here, but we would note that 10yr yields seem to be meeting some resistance around 2.88 (currently down 7.8bps on the day at 2.8874). Unless that changes, it could limit MBS's will to push much higher.