Morning gains are holding and extending slightly — UMBS 5.0 up to 98.76, adding 6 ticks since this morning's open; 10yr Treasury yield at 4.355%, down another basis point. MND's 30yr rate quote has repriced to 6.44%.

The bond market has been steady through the morning session. UMBS 5.0 added incrementally on top of the overnight surge, now sitting at 98.76. The 10-year Treasury yield continues to drift lower, touching 4.355% — nearly 2 basis points better than this morning's open. The geopolitical catalyst that drove the overnight rally is holding; no reversal in those headlines has materialized to pull the gains back.

MND's 30yr rate quote has moved to 6.44% as lenders digest the cumulative improvement — that's a meaningful repricing from the 6.54% print this morning and a 12-basis-point drop from yesterday's close. The ADP labor data that complicated the morning picture hasn't derailed the bid. With 46 ticks on UMBS 5.0 from yesterday's close, most lenders have now passed some improvement through to rate sheets. Borrowers quoting earlier this week are working with stale numbers.

— David Burson, NetRate Mortgage