• Fannie 4.5's up 6 ticks at 100-10.
• 10yr note up 8 ticks, yield down to 3.81
• Best levels from AM of 4/14 (EXACT LEVELS) represent turning points (resistance) for both MBS and Treasuries.
• What Technical Trading?!

In giving vent to indecision last night, we're now seeing close to the best eventuality--at least for now.  I say CLOSE to the best because we're not through any significant line of defense that would allow bonds to progress.  Makes sense, right?  Housing Starts were improved... SHOULD be bond bearish from a fundamental standpoint, yet bonds rally.  So where better to hit the wall but a completely uncommitted level EQUAL TOO OR WORSE THAN their previous best levels of the week?

The horizontal level at 100-12+ isn't the only technical at play in MBS either.  Dig the triangle man!  Check out the adherence to the trendline this AM.  This also implies that 100-05 to 100-06 might be supportive in the likely event that bonds head back the other way (because if they're not breaking through 4/14 AM's best levels, there's only one other direction to go!)

Treasuries...  Also likely to head back and find a support level, hopefully 3.83 to 3.84 at worst, and 3.82ish at best (derived from yesterday's low yield pivor right at noon).

Overnight floaters MAY eke this AM out with a gain, but too soon to tell.  Watching and waiting!