MBS had that "sideways feelin'" yesterday although spreads vs. treasuries weakened a bit.  As volume continues to be extremely low, we are left with two conclusions.  First, any market participation is going to have a larger than normal expcted impact on price levels.  That might lead to a little queasiness for those of you decising whether or not to stay in the float boat until the announcement.  Second, the announcement will give way to high volume which will set the short term tone for MBS.  With today's scheduled data already in, it's now left to the announcement to act as the sole massive data item. 

As always, we'll be right here, reporting the real time impacts on MBS.  Since the announcment doesn't come out until 215pm eastern, we usually float into it with pleny of time to adjust course if necessary.  There are two ways to look at today.  Either Bernanke's words will continue to be soothing to MBS as they have the last few times or, our luck has run out and we'll have to retrace deeper before advancing again.  The former is more likely.

Whatever your pipeline goals, be absolutely ready to lock before the announcement.  If that becomes necessary, we'll let you know.

The 5.0 is currently at 101-19, 2 ticks down on the day and 4.5's are still unchanged at 100-27.