We're heading into an afternoon that's likely to see more bets being made on Basketball games than in financial markets. Bonds in particular are on track for one of their 5 slowest days of the year.
That said, the price action has been skewed positively, especially for MBS. After a brief, but inconsequential dip at the open, bond markets bounced back before 9am and never looked back. In the bigger picture, we're sideways (see chart)
And MBS are merely stepping away from the ledge (i.e. avoiding a break outside the trend mentioned this morning. See the chart)
But compared to yesterday, we're an eighth of a point higher, and because of the aforementioned weakness at the open, not all lenders priced accordingly with their initial rate sheets. As such, positive reprices remain possible as long as we're holding these mild gains, but more so for the earliest pricing lenders (2 of which have already repriced).
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