Post 3 year note auction MBS remains stable and range bound.

125 marks....

(Since 5pm yesterday)

FN30______________________________________

FN 4.0 -------->>>> -0-08 to 98-28 from 99-04

FN 4.5 -------->>>> -0-04 to 101-00 from 101-04

FN 5.0 -------->>>> -0-02 to 102-12 from 102-14

FN 5.5 -------->>>> +0-01 to 102-30 from 102-29

FN 6.0 -------->>>> +0-01 to 103-16 from 103-15

GN30_______________________________________

GN 4.0 -------->>>> -0-08 to 99-01 from 99-09

GN 4.5 -------->>>> -0-03 to 101-11  from 101-14

GN 5.0 -------->>>> -0-02 to 102-23 from 102-25

GN 5.5 -------->>>> +0-00 to 103-07 from 103-07

GN 6.0 -------->>>> -0-01 to 103-17 from 103-18

Treasury successfully auctioned off $32,000,000,000 3 year notes.

Yield: 1.489%
Bid to Cover: 2.26

Indirect Bidders took home 40% of the offering. Overseas accounts continue to take home more US debt than usual.

When the TSY last auctioned 3 year notes on February 10 the market bid yields to 1.42%. The January issuance drew a yield of 1.20%.

Given the unknown direction markets are heading and the magnitude of recent Treasury offerings ....this isnt bad. The market is drowning is Treasury Debt Supply!!!

Stocks off their highs of the day. TSY yields moving lower...