Let me first say thanks for the participation last night.  Now everyone take a deep breath....no need to panic. I was simply stating that MBS is running out of gas much of the way it did a month ago. I will however take this opportunity to further explain. But first lets take care of business...

Volume is well above average this morning. The Fed is buying 4.5s and 5.0s...everyone else is moving "up in coupon". TSY rallies are not a help this AM bc of reasons I outlined last night. I am seeing that a few lenders are almost a full point improved since Monday...I think you already know who they are though.

FN30____________________________________                                  

FN 4.5 -------->>>> -0-03 to 101-01 from 101-04                                        

FN 5.0 -------->>>> -0-01 to 102-02 from 102-03                                    

FN 5.5 -------->>>> +0-01 to 102-19 from 102-18    

FN 6.0 -------->>>> +0-02 to 103-11 from 103-09                                        

GN30____________________________________

GN 4.5 -------->>>> -0-04 to 101-16 from 101-20

GN 5.0 -------->>>> -0-02 to 102-18 from 102-20

GN 5.5 -------->>>> +0-02 to 103-00 from 102-30

GN 6.0 -------->>>> +0-03 to  103-18 from 103-15

I am writing a much clearer explanation of last thoughts...Plain and Simple wasn't plain and simple was it?