Recap of Previous Session:

• healthy rally for MBS and tsy's with 4.5 fannies up 16 ticks (half a point)
• All this despite better than expected econ data
• Internals of some of the reports not giving equities what they're looking for, despite ostensibly bullish headlines
• In other words please MG?  For instance, the decline in Jobless Claims is offset by the increase in continuing claims
• Break it down MG, it's early...  No prob...  Ahem...  Who cares how good the headline jobless claims number is if there are still over 6 million people filing each week?
• negative revisions to previous econ data were also cited as contributing to the bond rally

The AM So Far and Day Ahead

• Right out of the gate, bonds corrected to the range implied by the bulk of yesterdays volume. 
  
• That's about 8 ticks down in tsy's and 4 ticks down in MBS.  No big deal yet, but...
• some stability is needed to solidify yesterday's gains in the form of better rate sheets today
• Too much chopitility this AM and soon we'd start to see that uncertainty premium hurt ysp
• quadruple witching = no econ data = headlines have more impact than normal
• Here's the chart... A bit of a bumpy take off, but at least the old bird's in the air.  Buckle up, hope for the best, and we'll get back to you on the intercom if you needed