Here's the damage so far today:

- MBS 4.0's down 12 ticks to 98-18

- MBS 4.5's down 8 ticks to 101-09

- 10yr Tsy down 17 ticks in price, up 6.4 bps in yield to 3.544

- Stocks mostly unchanged, still very range-bound

And by the time the close rolls around in a few hours, what we will likely have seen is a trading week that set up at the outer limits of a long term range, got extremely volatile amidst key data, and returned to a status quo at those outer limits by week's end.

In the charts below, the circles around monday's action show how current price levels are very much in line with Monday AM's trading range.  For tsy's, the long tracked 3.56 technical range boundary looks to be holding up for now, simply reiterating the same lessons we've been exposed to for months.  Play the range until the range plays you.  And in the spirit of that statement, were we to fall significantly below 101-09 in MBS or rise significantly above 3.56, it could signal more deterioration on the day.  Even then, after the rapidly approaching 3pm marking, not much will matter unless a tape-bomb of some sort causes a volume spike.  Even then, are the holiday vacationers even present in great enough numbers to do much about it?  See ya next year!

(nah.. we'll see ya monday, but still!  you get the idea!)