The market wanted the 10 yr note yield at 4.00%...the market gets a 4.00% 10 yr note yield. Well not quite yet...we've only seen it hit 3.991% so far. Traders are howeve test and retesting 4.00% ...so far three failed attempts at it. I bet we see 4.00% at least once today...bearish technical indicators overiding oversold indicators at the moment.

Unfortunately while TSY traders figure out short-term positions and strategies, MBS coupons will likely be shunned.....especially if the 10 yr yield goes over 4.00%. Reprice for worse reported.

Here comes the convexity hedge. Swaps higher and wider....