MBS OPEN: In Line With Friday's Levels... No Data On Tap

By: Matthew Graham

The AM So Far...

  • Tsy Futures moving steadily downward since open. At 116-27 after  being as high as 117-02.  Friday's high was 118-19
  • After initial weakness, both tsy's and MBS have either leveled off or made a turn.
  • 4.5's at 99-21, 10yr Tsy at 3.59
  • Thin trading ahead of tomorrow's auction

Recap of Previous Session

  • Home sales rocked everyone's world
  • MBS lost just over 20 ticks. Tsy's moved up in yield just over 10 bps
  • sold off early then gradually faded weaker into close.
  • Bernanke from "the hole" saying prospects for recovery look good.  some cared, but it was yet another vague generality.

In The Time It Takes To Type

  • nada

The Day Ahead

  • Other than some minor short term bill auctions, nada.
  • even the rest of the week is fairly light in terms of data.
  • biggest event on the horizon is tomorrow's 2yr auction

MBS, Tsy, and LIBOR Quotes