MBS has slid another 5 ticks since this morning — UMBS 5.0 at 98.87, now down 14 ticks on the day. The 10-year yield is at 4.359%, essentially flat from morning's open.

The bond market is drifting lower on its own weight. The 10-year has barely budged, but MBS is pricing in spread widening — which is the less favorable part of today's move for mortgage rates. The 30-year rate remains at 6.32%, but the MBS slide through the session is a signal that lenders are watching their hedges more carefully heading into Wednesday's GDP print. No reprices yet, but the setup is there if bonds don't stabilize this afternoon. Borrowers with rate locks already in hand are sitting fine. Anyone still floating is carrying real data risk through the week.

— David Burson, NetRate Mortgage