7:39 PST UPDATE, markets recovering slightly

Stocks have recouped some of their huge losses this morning and this may squeeze some money out of the bond market (meaning rates might not be as low as we hoped in the original post this morning).

Still, the 5.0% coupon is hovering around PAR at 100 and 1/32, down about 6/32nds of it's highs of the session.

 See today's first post below for more details on what this means for rates.  It's a long read, but we believe it to be well worth the extra time.