An Extreme Snoozer: MBS Edition today as we've treaded in a roughly 4 tick range all morning.
The 5.0 is up a few more since last time at 101-26, but the very thinly traded 4.5's are the same at 100-30.
Volume is very low this morning and although there is no anticipation about what the Fed might say tomorrow and how that would effect rates, every time Bernanke has spoken recently, MBS have responded well. More than anything, this "sideways" momentum right now is exactly what we need. It allows a "consolidation" of the gains we've had recently. It lets market participants figuratively "catch their breath" before continuing.
Things should stay relatively calm and sideways until Fed Announcement tomorrow.