The day, and week for that matter, are effectively over. The little volume that's left is exerting a greater degree of influence over the price action than it otherwise might. With little to trade on, and little reason to oppose the momentum, bond-bulls have gained control, dragging 10yr yields down into the 1.8's on a combination of Italy/Spain ratings news, concern that a Greek debt deal won't be reached over the weekend, and tradeflow-related selling (mini-snowball of shorts getting stopped out, lowering yields and thus stopping out more shorts).

Fannie 3.5's made it as high as 103-25 (all time highs 103-29 for reference), which is essentially as high as they got this morning, albeit briefly, but they do seem to be bouncing lower from those levels. Still, if the gains hold and despite the low volume, it's not inconceivable that we'd see a lender or two reprice for the better. However, current price levels combined with several other factors wouldn't lead us to think that many lenders would get involved with this on a Friday afternoon.