Quick update while investors prepare rate sheets and I write morning content...

Mortgages have traded in a tight range this morning. We continue to take our directional guidance (red or green) from the technical gyrations of the Treasury yield curve. This means MBS will have an ongoing relationship with the sentiment of equity traders.

At the moment stocks are meandering around in search of optimism...we will continue to watch and alert if any bias shifts in stocks begins to put pressure on TSYs and MBS. All in all...MBS remains a bystander to broad market  movements, MBS market participants will however make adjustments to their positions based on relative value (TSYs higher or lower) and prepay expectations(refinancers jumping off fence/or just finally qualifying).

Do not fret, while the non-public MBS accounts toil over their next move (I dont see much reason to meddle in extension risk filled coupons...most accounts will prefer shorter duration which means the Fed will remain a lonely buyer of originator offerings) Fed sponsored spending will provide liquidity for your "rate sheet influential" MBS coupons.

Since 5pm "Going Out" Marks....

FN30__________________________________

FN 4.0 -------->>>> +0-01   to  99-30   from 99-29

FN 4.5 -------->>>> +0-00   to 101-25  from 101-25

FN 5.0 -------->>>> +0-00   to 102-29  from 102-29

FN 5.5 -------->>>> -0-01  to 103-20  from 103-21

FN 6.0 -------->>>> +0-01   to 104-16  from 104-15

GN30_________________________________  

GN 4.0 -------->>>> +0-00  to 100-04   from 100-04

GN 4.5 -------->>>> -0-01   to 102-02   from 102-03

GN 5.0 -------->>>> -0-01  to 103-14   from 103-15

GN 5.5 -------->>>> -0-01   to 103-28   from 103-29

GN 6.0 -------->>>> -0-01   to 104-08   from 104-09

UST2YR Yield:  -0.004  to 0.9361

UST3YR Yield:  -0.008 to 1.3052

UST5YR Yield:  +0.002 to 1.8597

UST10YR Yield: -0.002 to 2.9007

UST30YR Yield: +0.015 to 3.7600