Ukraine-related headlines sent moderate shockwaves through markets overnight, pushing Treasury yields higher by the open. Since then, the negative momentum has continued in the absence substantive economic data. In short, Ukraine is today's only trade and we're seeing a correction to several days spent moving in the same direction.
Losses are approaching 3/8ths of a point in MBS and 0.07% in 10yr yields. Earlier-pricing lenders face the most reprice risk because most of the weakness since the open has been since since 9:40am. We're now on the verge of later pricing lenders considering reprices as well. That said, bond markets are also showing some signs that they're considering leveling-off into the afternoon, or at least slowing the pace of weakness.
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