Price action was extremely choppy following the release of the FOMC statement. Since the initial knee jerk reaction,  benchmark interest rates have rallied to ten session yield lows, led by the long end. The 2s/10s curve is 7bps flatter at 217bps wide, that is huge flattening. The 10yr note is +29/32 at 100-06 yielding 2.603% (-10.1bps). The 5 year note is +14/32 at 99-21 yielding 1.324% (-8.9bps). The November FNCL 4.0 is +17/32 at 102-23. The production MBS coupon yield has fallen to 3.509%.

LENDERS SHOULD BE IN THE PROCESS OF TAKING DOWN NEW INDICATIONS TO REPRICE FOR THE BETTER