Not much more to this alert than the title suggests. Fannie 3.0s are down to 103-21 after bumping our heads on highs of 103-26 to 103-27 around rate sheet time. The reason there’s not much more to it than this is the fact that the losses are completely incidental, not drawing on any headline or fundamental cause and effect.
10yr yields and SPs continue to cut narrow triangular ranges with 10’s off their 1.66 lows to 1.683 at the moment. They’d opened earlier at 1.69.
We’d probably note that MBS were a few ticks lower moments ago–103-19 to be exact–and at those levels, we’d be slightly more concerned than the 103-21. Whatever the case, risks are increased, and continue to increase if we tick down from here as opposed to hold ground supportively around 103-20.