MBS are down -4/32 (FNMA 30-yr 3.0 at 103.14), around 21/32 higher than yesterday at this time. Favorable repricing took place yesterday. Early investors may have priced at much higher levels.Investors have partially reversed the big moves seen yesterday, lifting stocks and hurting MBS. There remains a large amount of uncertainty about the leadership in Italy, but investors have lowered the expected impact that Italy will have outside the EU. The Dow is up 100 points. Fed Chief Bernanke will testify before Congress at 10:00 et. New Home Sales and Consumer Confidence will be released at 10:00 et. The results from the 5-yr Treasury auction will come out around 1:00 et.