Range moderating/bargain buying/short covering is boosting bids following a downright beating in the fixed income world yesterday (stocks too). I know its counterintuitive for many readers but the sell off was actually welcomed as lower dollar MBS coupon prices creates new entry points and a rejuvenated "Fed supported" buying bias.  The extent to which bargain buyers return in today's session will likely be subdued (hoping for PAR-NERTIA)  as many market participants,  US and UK,  are already out on four day holiday...and even then...those who are taking part today won't lose sight of the $101bn of notes coming in the week ahead.

Reprices for the worse were widespread as lenders trimmed rate sheets  by as much as 50bps YSP. Although the YSP lost isn't expected to be returned in this shortened Friday trading session, we would expect the losses to temper heading into June...that is unless the Fed is comfortable with the 10 yr note hovering around 3.40%....

There are no economic events on the calendar today. Ben Bernanke will address the graduates of Boston College Law School at 2pm...right in time for the SIFMA recommended early bond market close.

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

FN30________________________________

FN 4.0 -------->>>> +0-10    to   99-27  from 99-17

FN 4.5 -------->>>> +0-07    to 101-24  from 101-17

FN 5.0 -------->>>> +0-04    to 102-27  from 102-23

FN 5.5 -------->>>> +0-05    to 103-24  from 103-19

FN 6.0 -------->>>> +0-03    to 104-26  from 104-23

GN30________________________________ 

GN 4.0 -------->>>> +0-10   to   99-23  from 99-13

GN 4.5 -------->>>> +0-07   to 101-26  from 101-19

GN 5.0 -------->>>> +0-05   to 103-13  from 103-08

GN 5.5 -------->>>> +0-06   to 104-03  from 103-29

GN 6.0 -------->>>> +0-05   to 104-18  from 104-13

 

UST10YR: +0-12 yielding 3.323%

2s/10s: 246.5 bps

Dow Futures: +54 at 8349

 

EFFECTIVE FED FUNDS:  +0.03  to  0.17  from 0.14

LIBOR FIXINGS

O/N LIBOR:   +0.0087   to  0.2262 from 0.2175

1 MONTH:     +0.0044   to  0.3131 from 0.3088

3 MONTH:     -0.0012    to  0.6600  from 0.6612

6 MONTH:     +0.0313  to  1.2012 from 1.1700

1 YEAR:       +0.0450   to  1.5313  from 1.4863

 

Its 5pm all day today...