Today began on a positive note for bond markets as a few headlines from the overnight session reinvigorated uncertainty regarding the next austerity vote for Greece. MBS and Treasuries kicked the day off significantly improved and were not much deterred by Jobless Claims beating estimates ( still worse vs.previous report though). Following that, we found out that New Home Sales decreased marginally in May, staying in an odious long term pattern tracing all the way back to 2010, just above all-time lows. No major surprise there, but taken in conjunction with still-high jobless claims numbers, the Fed's GDP downgrade yesterday, and developments in the EU debt crisis, and a logical "flight to safety" ensued: Stocks down, Bonds up. But in stark contrast to recent sessions, MBS price volatility was low. We were one-way, almost all day. The Fannie Mae 4.0 is going out +11/32 at 101-07. This is 6/32 off the price high of the day, but it made little difference in the grand scheme of things. For almost every lender, the improvement in MBS prices versus yesterday was already accounted for in the first release of rate sheets this morning. Because there were limited reprices for the better around the 101-13 price high, the day is ending relatively in-line with where rate sheets should be, based on MBS indications. Some lenders might owe you .125, but that's about it. Don't hold your breath though, lenders remain defensive, and with good reason considering the potential lock fall-out at stake here. One last observation: Benchmark 10s have been proven unable to sustain a rally through 2.90%. Right now 10s are going out at 2.923%. That implies we'll either need to see a sustain commitment to rally from the bond market, soon, or the next move for 10s is likely higher. That would likely lead MBS prices lower.