• Fannie 4.5's at 99-29
• 10yr Tsy yield at 3.865
• Couple bouts of volatility earlier have given way to a narrow range for MBS
• 4.5's are well off the lows at 99-22/99-23, closer to highs of the day
• Treasuries are about Mid range on the day.
• Both markets settling down into pre-NFP level (probably)

Longer term, both markets are not looking to hot versus the rest of 2010.  Maybe backing up close to these weakest levels of the year is indicative of the threshold the markets are getting prepared to cross?

I'd expect the triangles drawn above in the top chart to generally guide prices and yields into the PM (barring the unforeseen).  And tomorrow's NFP to either make the horizontal lines in the 2 bottom charts either look like old support or new resistance.  Fingers crossed for old support.