MBS LUNCH: Slightly Improved In Confines Of Narrow Range

After the TIPS auction just over an hour ago, there is little left to provide guidance for rates.  That's not an entirely bad thing today as the 4.5 is up 6 ticks at 100-13, and the 4.0 slightly better up 9 ticks to 97-10.  This represents a moderate amount of tightening as the yield curve is nearly unchanged with nothing from 2's to 10's off by more than 2 ticks.  That puts the 10yr at 3.78 at the moment, moderately better than most of Friday's range, but a bit weaker than the shallow end-of-day rally. 

Your best visual on the notion of NARROWNESS (which tends to coincide with low volatility + lack of guidance) is the mere 2bp range in Tsy's, and about a 5 and a half tick range in MBS prices.  In other words, not much happenin, for better or worse, but we'll let you know if that changes.