False alarm! Production MBS coupons have returned to the middle of their slow, steady, stable, sluggish, sidways trend channel....

Since 5pm "Going Out" Marks...

FN30________________________________

FN 4.0 -------->>>> +0-00  to  100-02  from 100-02

FN 4.5 -------->>>> +0-00  to 101-26  from 101-26

FN 5.0 -------->>>> +0-00  to 102-31  from 102-31

FN 5.5 -------->>>> +0-00  to 102-22  from 103-22

FN 6.0 -------->>>> +0-00  to 104-17  from 104-17

GN30________________________________ 

GN 4.0 -------->>>> +0-01  to 100-09  from 100-08

GN 4.5 -------->>>> +0-00  to 102-03  from 102-03

GN 5.0 -------->>>> +0-00  to 103-18 from 103-18

GN 5.5 -------->>>> -0-01   to 103-29  from 103-30

GN 6.0 -------->>>> -0-01   to 104-09  from 104-10

Not sure what caused the brief blip yet, but one can assume that it has something to do with a complete lack of activity in the TSY and MBS market. The only thing keeping traders from heading out for the weekend is the 2pm press release that will outline the criteria federal regulators used to determine the balance sheet "stress" of 19 financial institutions.

The results of the stress test will be privately communicated to the executive management of the 19 firms, but will not be available for public scrutiny until May 4, 2009. Nonetheless, the release of the parameters used to assess the "stress" will allow market participants to develop their own opinion of the health of the financial sector.

This is really the only thing going on right now...SLUGGISHLY SIDEWAYS!