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It's been a light day for new originations so far in MBS with current totals in Fannie/Freddie 30yr Fixed around 1/4 to 1/3 of their recent averages. That light supply environment, in conjunction with a decent enough rally in broader bond markets has helped lift production MBS to their highest levels since last Thursday. Fannie 3.5's are currently up more than a quarter of a point at 103-25 (note: chart below shows 103-23 as it was snapped slightly prior to this post). As far as the broader rally is concerned, 10yr yields are just over 3bps lower, currently trading in the mid 1.94's. (source: MBS Live Dashboard ) In the broader markets, volume today is slightly better than yesterday, although totals are still on the light side of normal. Markets are ostensibly waiting for tomorrow's "second...()