MBS AFTERNOON: Range Narrows Ahead Of Confirmation Vote

All the shoes have dropped for the trading day, so what is there left to do?  Sideways and range-bound with decreasing volatility?  Sounds good...

But don't let the docile nature of the charts fool you.  Sure, it looks like we've had a low volatility day - rangebound and sideways - simply a consolidation of yesterday's weakness.  But to a much greater extent, this is a market prepared for the move in the next direction...  This sideways slide isn't something that's going to last through tomorrow.

Congress is currently voting on bernanke confirmation, and it's NOT safe to assume that bond traders have made any assumptions...  Get my meaning?  Sure, the expectation is one thing, but remember that whole TARP vote thing?  Nothing's certain until it's certain...

To compound that phenomenon, this week can get even more info from the 4 data reports tomorrow.  We'll talk more about those in the close tonight.