Morning economic data and eventful "money moving" news behind us....here is a snapshot of the markets:

The pace of TSY trading has slowed a bit following a brisk(er than usual) morning. The 10 yr note is currently... guess what...being moderated by the range!!!! The 3.25%  yield is acting as the 10 yr TSYs "fulcrum" point (:-D see MBS MORNING) with positions not venturing too far from the median market bias. In MBS MORNING I talked about the demand for corporate debt...that stop on the yield curve is again seeing heavy flows today....chase that yield spread!!!

After hitting an early session low of 8463 the biggest sentiment indicator in the world, the Dow,  rebounded nicely back to an intraday high of 8538 before heading sideways. Volume is light and traders will be quick to take their profits so we expect any intraday gains to moderate by day's end (slightly higher though). We are not looking too far into these fluctuations in terms of their effect on a "flight to safety" flow into fixed income...TSYs and MBS remain RANGE BOUND!!! OOOOooo...there it goes as I type. Here's a picture...

And MBS is no different. SLOW SLOW SLOW SLUGGISH SLUGGISH SLUGGISH. The 4.0 has been trading in a super tight three tick range all day...YAWN. 15 yr coupons are seeing some added attention as supply in that sector is even more sparse than the 30 yr stack (and investors are going after less expensive, shorter duration, higher yielding cash flows (less expensive than FN 6.5).

Check out how much noise is in this chart...zip zilch zero. Noise as in you can count the number of trades that have moved the bid level today....

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

FN30________________________________

FN 4.0 -------->>>> +0-00   to 99-28    from 99-28

FN 4.5 -------->>>> +0-00   to 101-22  from 101-22

FN 5.0 -------->>>> +0-00   to 102-24  from 102-24

FN 5.5 -------->>>> +0-00   to 103-18  from 103-18

FN 6.0 -------->>>> +0-01   to 104-24  from 104-23

GN30________________________________ 

GN 4.0 -------->>>> +0-01  to 99-25    from 99-24

GN 4.5 -------->>>> +0-02  to 101-26  from 101-24

GN 5.0 -------->>>> -0-03   to 103-13  from 103-16

GN 5.5 -------->>>> +0-00   to 104-03  from 104-03

GN 6.0 -------->>>> -0-05    to 104-15  from 104-20

The NY Fed just announced they will allow CMBS legacy loans to be purchased at TALF window...as long as they are AAA rated (not so much). That should help out CMBS spreads a bit though...not sure if private sector will be interested in that debt.