Last Session Recap

• 3yr auction sees decent demand offset by a higher than expected yield
• reactions were mixed until stocks sold late day, pulling tsy yields down on the FTQ (flight to quality)
• Stocks at worst and bonds at best levels since May
• Stimulus 2.0?

The AM So Far...

• Up a few ticks so far as "down in coupon" takes some practice swings before 10yr auction later today tells us how much everyone in the lower stack is worth...
• 10 yr auction later today (1pm) tells us how much everyone in the lower stack is worth
  
• translation?  The yield curve is the primary force driving MBS these days.  Lower coupon (4.0 and 4.5) are more closely approximated by 10yr duration than by yesterday's 3yr. 
  
• Nada on the data-0-meter so far unless you care about store sales and redbook. 

MBS QUOTES (and other cool stuff)

Charts