The rate-indicative 10-year Treasury yield has been falling, and as of Monday morning had slipped back to the 3.9% level at which refinancing may pick up."Most originators are reporting good production," said Alec Crawford, a mortgage-backed securities researcher at RBS Greenwich Capital, in a Monday morning report. On the servicing side, Mr. Crawford said things have been "quiet," but that RBS Greenwich Capital expects that "further yield curve flattening may be greeted by unwinds of servicer flattening trades." The RBS Greenwich Capital Market researcher also recommended that market participants "keep in mind, most servicers look at sub 4% as approaching net positive convexity on their overall book."

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