MBS RECAP: Incidental Weakness and Light Volume ahead of NFP


Fannie 3.5s have fallen half a tick below the levels that prompted the days first reprice risk notification–currently down 9 ticks at 101-27. The weakness is incidental/tradeflow-related. 10yr yields have risen moderately in the last 10 minutes, up to 2.612 compared to AM highs of 2.616.

Volume remains appallingly light, building an ongoing case for the focus being squarely on tomorrow’s NFP release.

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