Current MBS Price and Day Over Day Change:

FN 5.5 30YR MBS = 100-11  .... +0-010 (10 ticks)

 

- Jobless Claims in this morning at 542,000

- Continuing Claims crested 4 mln

- 4 week moving average to 506k

- Notwithstanding a one time spike in 1992, this is the highest level since 1982

As one might expect, the utterly crushing economic data these days tends to stimulate a FTQ (flight to quality) bid which favors tsy's over MBS.  That's not to say that MBS are not gaining as well, just not as fast as Tsy's.

As far as other indicators this AM:

  • 10UST  + 32 ticks down to nearly an All Time low yield at 3.21
  • 5UST + 5 ticks to 1.99 yield
  • 30UST up 78 ticks also in "all time" range at 3.78
  • 1 Mo T-Bill hovering around 0.00%
  • Oil down 2.82 to 50.80!
  • Dow Futures Down about 100 to around 7900

Still to Come:

  • Leading Indicators for October. 
    • Forecasts calling for a -.6 reading down from a +.3 last month.  Range of the forecasts is from -1.2 to -.2
  • Philly Fed Survey. 
    • Consensus calls for -35.0 which would be just slightly down from October's largest ever drop to 37.5.  The range is from .45.0 to -24.8