Overnight treasuries only lost a few more ticks (not even 4) in low volume, which had provided a relatively stable basis for MBS this AM.  In the first half hour however, we've headed down about 3 ticks across the board.   Here's the run down:

FN30_______________________________

FN 4.0 -------->>>> -0-04  to 99-30  from 100-02

FN 4.5 -------->>>> -0-04  to 101-25  from 101-29

FN 5.0 -------->>>> -0-03  to 103-00 from 103-03

FN 5.5 -------->>>> -0-05  to 103-23 from 103-28

FN 6.0 -------->>>> -0-03  to 104-24  from 104-26

GN30________________________________        

GN 4.0 -------->>>> -0-05  to 100-06  from 100-11

GN 4.5 -------->>>> -0-05 to 102-03 from 102-08

GN 5.0 -------->>>> -0-03  to 103-18  from 103-21

GN 5.5 -------->>>> -0-02  to 104-04 from 104-06

And graphically:

Stocks were mixed overnight with the general consensus being a slight improvement.  Citi's earnings came out with the first profit in 6 quarters at$1.6 bln.  GE also released solid earnings.  However neither of the two firms shares have reacted in grand fashion. 

There is very limited data today with consumer sentiment coming up at 10AM and Dr. Ben speaking later in the day.  Given that, plus the options expirations today in equities markets, we're relegated to watching earnings and emotion for potential directionality.  Then again, we knew that yesterday which is probably why we were slightly more predisposed to locking than normal.  Indeed, Friday's have not been friendly of late, but we'll be back soon to let you know if this one gets any friendlier.