The treasury auction today at 1pm was pretty successful, with higher foreign demand than the previous 10 yr T-note auction.  Since the auction, treasuries have turned around and are moving higher in price which drives the yield down.  After reaching a high yield of 3.03, they are currently trading at 2.91.  MBS have improved slightly as well, currently they are up 5 ticks or just over .125 in discount.  Some lenders have repriced to the better.  When i say rates have improved by .125 in discount, that means if a rate was costing you a point to get, it will now cost .125 less or .875.

After the last 2 days, it is nice to see mbs moving in the right direction.