5.5's are up two ticks on the day now, being capped by bullish stocks and today's black sheep treasuries.

The spread tightening makes sense as positive buzz for the bailout picks up, but a stock rally? Oh well, I suppose the markets have decided that "Buffet" = "Buy." Or maybe the equities boys are just not comfortable with the number "0" in the thousands column of the Dow.

Whatever the case, for 5.5's to be up 2 ticks now at 100-05 (well above our "panic floor"), is a good sign considering stock strength. MBS are outperforming swaps as well. All good things. Stay tuned.