The treasury auction today at 1pm was pretty successful, with higher foreign demand than the previous 10 yr T-note auction. Since the auction, treasuries have turned around and are moving higher in price which drives the yield down. After reaching a high yield of 3.03, they are currently trading at 2.91. MBS have improved slightly as well, currently they are up 5 ticks or just over .125 in discount. Some lenders have repriced to the better. When i say rates have improved by .125 in discount, that means if a rate was costing you a point to get, it will now cost .125 less or .875.
After the last 2 days, it is nice to see mbs moving in the right direction.