• ridiculously flat trading in MBS and Tsy's
• low volume, sparse data calendar, looking toward auctions
  
• Did we mention flat trading?
  

You'll rarely see MBS and Treasuries trade this flat for this much of the day.  From 10:45 on, MBS haven't moved more than 1 tick and tsy's not more than 1bp.  Volume is light on both fronts with MBS just over half recent norms.  Perhaps even more telling, a quick scan down Fannie, Freddie, and Ginnie MBS from 4.0 to 6.0 shows every security in that range UNCHANGED on the day, except Ginnie 4's, currently up ONE tick.  Yawn.....

Stocks are pretty much unchanged across big 3 indexes as well.  No further data today (not like there was any this AM), and biggest event tomorrow, apart from 3yr auction, looks to be fed-speak!  Other than 10yr Auction, Wednesday is dead too!

MBS tightening vs. tsy's again as the 10yr note is down 7 ticks vs. MBS unchanged.  To whatever extent that's a concession for uncertainty ahead of auctions, an equal and opposite reaction could occur once that uncertainty is cleared up, making things a bit tougher for MBS.