I think we all can agree that it was a strange and unfamiliar sight to be greeted with news of tightening spreads this morning. Looks like treasuries have taken care of that for us. Phew.... Thank goodness... That was a little too sudden (/sarcasm).

Choppy morning so far, scheduled data, Hank and "Ol' Locky" yet to come.

MBS, despite spreads retracing to yesterday's levels are up a bit from earlier (still down 7 ticks day over day, 8 ticks from "going out" levels) at 100-24. Remember our "new world order" price floor is between 100-16 and 100-18. Being so close to those levels, barring catastrophe, it serves as sort of "$25,000 question on Who Wants To Be A Millionaire." Get that? No?!!?! In a nutshell, it's extremely unlikely that floor will be violated (the caveat is always major headline risk), which gives us room to be a little more bold in our attempts to fly, because should we fail, it's not very far to the ground.

Back in two shakes with LEI and Mo-Town Philly Fed Survey.