The stock lever detached from the rates market for awhile. Watch for stocks to sell later in the day. At moment the S&P is up 0.39%, testing intraday support at 1120.

 The 3.625% coupon bearing UST10YR note is chopping around PARNERTIA. Now back in the green after spending a few hours underwater.

10yr note yields illustrate a more orderly channel...the two day trend implies we are heading back to the 3.64% mid range pivot.

Rate sheet influential MBS coupons continue to play follow the leader with benchmark big brothers. Below is the same chart I used in the OPEN and the MORNING post....I did zoomed out a bit farther though. Although yesterday's low print has been taken out, volatility in the basis (vs.10s) has helped the FN 4.5 bounce at 100-27.

The FN 4.0 is currently +0-01 at 98-08 yielding 4.169% and the FN 4.5 is +0-01 at 101-03 yielding 4.379%. The secondary market current coupon is 4.316%. We have set a hit new intraday price high. CHOP CHOP. The CC is +70.6bps over the 10 yr note yield and +64.2bps over the 10yr swap. We dont discuss the other side of the stack too often but....up in coupon is outperforming following yesterday's announcement from Fannie Mae.

While further gains and losses have been contained by pivot points,  price action has been volatile. At the moment, reprices for the better are more likely than reprices for the worse. Its hard to glean much from these market movements with jobs data right around the corner. Especially given today's empty calendar.