Bonds haven't lost quite enough ground for any serious negative reprice risk, but they've been moving in that direction all morning. The weakness doesn't line up well with any of this morning's economic data. The fact that it's been a steady grind and well-aligned with stocks suggests month-end tradeflow issues.
Fannie 4.0 MBS are hovering between 'unchanged' at 100-30 and +0.1 at 100-31 (100.94 - 100.97). 10yr yields are down .36bps at 3.0519.
