Quick price update while I consider how to efficiently tip toe around the emotions of the mortgage market...

APRIL FN30______________________________

FN 4.0 -------->>>> -0-01 to 100-23 from 100-24

FN 4.5 -------->>>> -0-04 to 102-11  from 102-15

FN 5.0 -------->>>> -0-01 to 103-06 from 103-07

FN 5.5 -------->>>> -0-05 to 103-19 from 103-24

FN 6.0 -------->>>> -0-05 to 103-30 from 104-03

APRIL GN30____________________________________

GN 4.0 -------->>>> -0-02 to 100-19  from 100-21

GN 4.5 -------->>>> -0-04 to 102-18 from 102-22

GN 5.0 -------->>>> -0-01 to 103-22 from 103-21

GN 5.5 -------->>>> -0-05 to 103-30 from 104-03

GN 6.0 -------->>>> -0-06 to 104-03 from 104-09

The stack is shaking off a "post-FOMC" hangover and attempting to piece together a reasonable estimation of expected borrower refinancing behavior. MBS investors are having no issues in deciding whether or not to participate in mortgage buying, that is of no concern considering the Fed has outlined a spending spree that will easily offset originator issuance. MBS investors are however having some difficulties planning out the prospective positions that will ensure maximum profitability within the stack.

Plain and Simple: Its hard to say when borrowers will start jumping off their fences on a broad scale...while the Fed continues to provide support for production MBS coupons the market will continually attempt to gauge the risk of meddling in fat/full/engorged premium (103/104 handle) "up in coupon" positions. Pretty much the market is wondering if they are making the same mistake for a third time...will the stars align?

The yield curve is also making some post announcement adjustments as fixed income investors contemplate the inflationary effects of all out quantitative easing (monetizing debt = inflationary)