This is one of those alerts where we wouldn’t be shocked to see a lender or two reprice for the worse, but it certainly wouldn’t be justified (the reprice, that is…. Not the shock…). Volume is so low and the trading range has been so narrow that even saying “lows of the day” is a bit of an overstatement.
Fannie 3.5’s are at 102-01, which is only 2 ticks lower than the 102-03 technical target. 10yr yields are similarly near their highs of the day, but again, volume and volatility are low, and 10’s are still very much in their range (not to mention that it’s after the 3pm close and most market participants are moving on to tomorrow).