Still More Volatility Than Directionality Following Fed
Since the release of the FOMC Announcement, bond markets have done more to move sideways than to embark on a convicted sell-off. In fact, 10yr yields are back in the 2.71's after briefly breaking over 2.73. MBS held a supportive line at 104-13 and are now back up to 104-16. Until/unless these previous limits are broken, reprice risk remains more limited.
At current levels, most lenders are only 4 ticks weaker than rate sheet print times. That leaves the door open for an aggressive lender, but doesn't force anyone's hand. The reaction is still unfolding, however, and the lack of negative follow-through isn't necessarily positive.