• MBS Nausea continues with general malaise of writedowns, negative forecasts, etc...
  • That has made spreads wider, but FI doing good in general so 6.0's up 5 ticks to 99-20.
  • Asia remains mostly uninterested
  • CPI coming on Thursday with a safe guess of .2% up on the core.
  • Floating currently as we should safely make it to rate sheets without major reprice risk.  Stay tuned for intraday alerts, but there are two kinds of people right now: those who think 99-20 is about as low as it gets this year, and those that think we're headed to 98.  There seems to be more LOGICAL evidence for the prior and more emotional for the latter.  As to deciding between logic and emotion in this market, good luck.  As always, we'll know more as the week unfolds and another "bounce" of low 99 levels would be significant (as would a violation of that floor).