The trend of rates market price weakness is extending to new levels at higher yields following the release of Philly Fed and Leading Indicators data.

The 3.625% coupon bearing 10 year TSY note is now -0-06 at 98-28 yielding 3.761%. That is above our 3.75% support level. Ruh-roh. We could really use a bargain bid from China at the moment, but they don't go back to work until next week. There was a brief rally after 830 data...that was a function of short covering though. 

 This is where we stand in regards to the post Dec.21 sell off.

Mortgage flows have been thin as many originators locked up yesterday (almost $2bn in 4.5s) while others still find it difficult to make a trade  with MBS relative valuations still super rich vs. benchmarks. The  FN 4.0 is -0-03 at 97-16 yielding 4.235% and the FN 4.5 is -0-03 at 100-18 yielding 4.441%. The secondary market current coupon is 4.42%. The current coupon yield is +68.4/10 year TSY yields and +58.9/10 year swap rates.

I am running late to a doctor's appointment...will be back after lunch. MG is on the watch.

If your lender priced early in the morning...you might get a reprice notice. If your lender just published...rate sheet rebate is worse.