That little scare is behind us! MBS is now benefiting from a lack of supply, an abundance of liquidity, and an FOMC downgrade of GDP!!! (FOMC Minutes) Eh that last one isnt so exciting when you consider delinquencies.

3pm Marks...

NOTE: FN/FG April Coupons are now CLOSED FOR THE MONTH OF APRIL!!!

Conventional 30 year fixed rate sheet pricing will be based on May Delivery FN/FG MBS from now on...(this means prices on FN/FG 30 MBS will have dropped 8-11 ticks after 3pm...do not panic...this reflects the roll forward to May Delivery). And no investors will not reflect the 7 tick loss in their rate sheets...

GN Settlement is not until next week...we will continue to watch April GN coupons.

April FN30_______________________________

FN 4.0 -------->>>> +0-11  to 100-17  from 100-06

FN 4.5 -------->>>> +0-10  to 102-07  from 101-29

FN 5.0 -------->>>> +0-10  to 103-16  from 103-06

FN 5.5 -------->>>> +0-08  to 104-08 from 104-00

FN 6.0 -------->>>> +0-07  to 104-31 from 104-25

April GN30________________________________

GN 4.0 -------->>>> +0-04  to 100-20  from 100-09

GN 4.5 -------->>>> +0-04  to 102-15 from 102-03

GN 5.0 -------->>>> +0-03  to 103-31  from 103-23

GN 5.5 -------->>>> +0-07  to 104-15 from 104-09

GN 6.0 -------->>>> +0-00  to 104-28 from 104-24

Here is a chart of the selloff and the following reaction by MBS buyers....Remember the Strategy: sell as prices get too expensive and buy when prices cheapen up. Churn your profits and enjoy the liquidity!

Check out the recovery production MBS coupons have made since stocks lost their optimistic attitude in late March. I am sure no mortgage banker or broker will protest the process of stocks determining whether or not the worst is behind us! April FN/FG MBS coupons ended the month STRONG!

AND YES YOU ARE DUE A REPRICE FOR THE BETTER!

Today is Wednesday...that means its time for Bill Berliner's Weekly Op-Ed. YAAAAAY!!!!!