If you haven't gotten a reprice for the worse yet, you will be soon. If you have gotten a reprice for the worse, I wouldn't rule out another round of rebate reductions.

The November FNCL 3.5 is currently -0-06 at 101-05 after touching 101-22 in the mid-morning hours. A rally in stocks, light afternoon trading flows in TSYs, profit taking on the basis and originator MBS supply are all to blame.

Volume was heavy into the rates rally and weak into the sell off. It's a "bid wanted" Friday afternoon. Reprices for the worse should put pricing back in line with what was offered yesterday by lenders but I wouldn't be surprised if lock desks get a little rough with rate sheets heading into a long weekend.  At this point I would not be panicking. Higher rates will attract the attention of real money buyers. The hunt for yield continues...

ALERT: TODAY IS CLASS A NOTIFICATION DAY IN THE TBA MBS MARKET. READ MORE ABOUT WHY THIS IS IMPORTANT

Everyone have a great long weekend. Remember the bond market is closed on Monday.....