MBS are being dragged down enough for some lenders to be considering negative reprices, but the brunt of this morning's weakness is being born by Treasuries. In terms of day-over-day change, MBS are right in line with yesterday and the reprices are a factor of beginning the day in stronger territory and moving weaker intraday.

Treasuries also began the day in stronger territory after following European bond yields lower overnight, but nonetheless remained in their recent broadly sideways trend.  The only caveat is that the range has been expanding as the week progresses.  This looks like a bullhorn on a chart.

2015-4-9 expanding volatility

What does it mean?  Not much in this case.  Historically, it could have been viewed as a series of high-conviction responses to disparate data and headline events.  These days, it's more to do with illiquidity than anything.  It's just so much easier for a small imbalance in tradeflows to result in swings that look bigger and more important than they actually are. 

Today's key consideration is a conservative pre-auction "concession" trade.  This isn't likely to change before 1pm.  The tradeflow momentum that will dictate the rest of the week's pace should become apparent after 1pm.  From a technical standpoint, a break above 1.95% in 10yr yields could bring more sellers into the market.

MBS Pricing Snapshot
Pricing shown below is delayed, please note the timestamp at the bottom. Real time pricing is available via MBS Live.
FNMA 3.0
102-13 : -0-02
FNMA 3.5
105-06 : +0-00
FNMA 4.0
106-28 : -0-01
2 YR
0.5480 : +0.0120
10 YR
1.9320 : +0.0260
30 YR
2.5610 : +0.0310
Pricing as of 4/9/15 12:25PMEST

Morning Reprice Alerts and Updates
A recap of Alerts and Updates provided to MBS Live subscribers.
10:22AM  :  ALERT ISSUED: Modest Increase in Negative Reprice Risk
9:26AM  :  Auction Concession Outweighs All-Time Lows in Europe; MBS Outperform

Live Chat Featured Comments
A recap of featured comments from the Live Discussion on the MBS Live Dashboard.
Matthew Graham  :  "no, there's no chance they pay anyone 300bln of their own money in any of our lifetimes"
Ted Rood  :  "So you're saying there's a chance!"
Matthew Graham  :  "so they only have to come up with 700 times that amount to be out of debt."
Matthew Graham  :  "so far, we only know that Greece says it made a €450 mln payment to the IMF"
Ted Rood  :  "CNBC says Greece made their debt payment today. Can anyone confirm if their check actually cleared?"
Matthew Graham  :  " (Bloomberg) -- FHFA will likely announce a reduction in g- fees and LLPAs for the highest credit quality borrowers and for mortgages backed by mortgage insurance, FBR analyst Ed Mills writes in a research note."
Matthew Graham  :  "RTRS - US JOBLESS CLAIMS ROSE TO 281,000 APRIL 4 WEEK (CONSENSUS 285,000) FROM 267,000 PRIOR WEEK (PREVIOUS 268,000)"
Ira Selwin  :  "There is no issue in closing that loan - some investors have residual income overlays"
Clay Schmeisser  :  "I have a 95% LTV purchase where I am getting Rebuttable Presumption Result from when I run my QM Test. My APR is 5.398% vs 5.250% threshold. Do we have a way to still close this? "