Mortgage Bonds are down 22 basis points as I write this.
Lenders will be re pricing mortgage rates for the worst.
Nervousness ahead of the 10 Year Treasury Auction can be the reason for Mortgage Bonds loosing ground.
However, this can change if the auction goes well.
Stay tuned, but for now we recommend locking in ahead of an intraday re price for the worst.
Current Price of FNMA 4.00% Bond: 100.97 -22BP