After sliding a bit earlier this morning, Fannie 3.0s were able to find their footing around short term technical level of 104-10, essentially a pivot with yesterday’s highs (also was initially supportive last Friday before the sell-off began).
Ranges remain narrow, however, and the bounce back only brings prices to 104-15, which are generally in line with this morning’s rate-sheet print times.
10yr yields made a run into the 1.79’s but have also bounced back and similarly languish in the midst of their late morning/early afternoon range. Trading has grown progressively less inspired, and we see little moving markets outside of observing and reacting to tradeflows.
As such, there’s not much to do except keep an eye on ranges, and mostly with respect to the lower end of the range at 104-10. It continues to be the case that this is the line in the sand for negative reprice risk whereas positive reprice potential is really anyone’s guess. Some lenders might already be considering it due to the stability, but incentive for such things is generally limited when rates are already at all-time lows.