Good Morning...
Putting fast money "stock lever" yield curve fluctuations aside...the rates market is in defensive mode ahead of the Treasury Department's 11am auction announcement of an expected $100bn in new issuance of 2/5/7 year TSY debt (plus refunding of 3s/10s/30s next week).
Ahead of the announcement fixed income buyers have been opportunistically trading the "stock lever" pressured yield curve....but have not removed a conscience eye from the ghost of TSY supply "yet to come. Market participants are positioned in a bearish stance which implies significant drops in benchmark rates may not last long (fundamentally---however that is dependent on the stock lever/fast money influence). Mortgages are indeed nearing the end of a trend channel and looking for new direction. READ MORE about the crossroads in MBS CLOSE...
Since 5pm "Going Out" Marks....
FN30__________________________________
FN 4.0 -------->>>> +0-01 to 99-29 from 99-28
FN 4.5 -------->>>> +0-02 to 101-25 from 101-23
FN 5.0 -------->>>> +0-02 to 102-30 from 102-28
FN 5.5 -------->>>> +0-01 to 103-21 from 103-20
FN 6.0 -------->>>> +0-00 to 104-15 from 104-15
GN30_________________________________
GN 4.0 -------->>>> +0-02 to 100-04 from 100-02
GN 4.5 -------->>>> +0-02 to 102-02 from 102-00
GN 5.0 -------->>>> +0-02 to 103-16 from 103-14
GN 5.5 -------->>>> +0-02 to 103-30 from 103-28
GN 6.0 -------->>>> +0-02 to 104-10 from 104-08
EFFECTIVE FED FUNDS: +0.00 to 0.15 from 0.15
LIBOR FIXINGS
O/N LIBOR: -0.0037 to 0.2025 from 0.2062
1 MONTH: -0.0025 to 0.4375 from 0.4400
3 MONTH: -0.0075 to 1.0919 from 1.0994
6 MONTH: -0.0181 to 1.6394 from 1.6575
1 YEAR: -0.0175 to 1.9500 from 1.9675