Following the record $35bn 5 year Treasury note auction, the yield curve moved steeper and  "rate sheet influential" MBS coupons hit fresh intraday lows. There has been a slight bounce since then but we are still in a gray area in terms of directional guidance for the rest of the day.

WE ARE IN DEFENSE MODE...so if you have not locked in at this point it may behoove your wallet to do so! See MBS LUNCH for more market commentary

(update 1:15 pm): Treasuries tanking rapidly and MBS can only fight off so much.  Reprices for the worse are likely to certain at this point.