MBS continues to follow the lead of TSYs today. TSYs yields are however increasingly outperforming MBS.  In the short end of the stack... spreads are now up to 9/10 ticks wider vs. TSYs and 9/10 wider vs. swaps....

This has been the norm of late as investors contemplate the fiscal effects of new political intervention in financial markets. As TSYs continue to rally the "down in coupon" MBS bias will push 4.5s and 5.0s bids closer and closer to "REPRICE FOR THE BETTER" levels....stay tuned

1230 marks...

FN30__________________________________

FN 4.5 -------->>>> +0-14 to 101-05 from 100-23

FN 5.0 -------->>>> +0-09 to 102-04 from 101-27

FN 5.5 -------->>>> +0-07 to 102-20 from 102-13

FN 6.0 -------->>>> +0-04 to 103-05 from 103-01

Stocks and Bonds...