Monday 6/30/08 .... MBS Holds Steady Over Weekend

At A Glance:

MBS BETTER 4 ticks over official close, 0 ticks DoD, Slight Stronger vs. UST's
Stocks hit "bear" qualifications last week. Futures bumpy but DJIA opens near even
NY PMI (not chicago), weaker at 45.4, but 6 mo. outlook rises to 63.8
Weekly outlook slightly improved for MBS
QUICK LOCK GUIDE: Floating until we see Friday's gains priced in. Chicago PMI at 9:45.

Vigilance: High... Chicago PMI is last scheduled data of day. After that, we watch stocks and headlines...

abbreviations guide (ongoing list):

MBS - Mortgage Backed Security

MDPC- Mid Day Price Change (plus means for the better, minus for the worse)

DOW or DJIA - Dow Jones Industrial Average

Ticks- 1/32nds of bond pricing. 8 ticks=8/32nds=.25 in cost (YSP or discount)

DoD, YoY, MoM- Day over day, year over year, month over month, etc..

O/N- Overnight

Coupon- The "interest rate' of the MBS

6.0's, 5.5's this will always mean FNMA 30yr Fixed MBS with a coupon of that number. 6.0's = 6.0% coupon rate MBS

PCE- Personal Consumption Expenditures

UST- United States Treasury Bonds. 5UST = 5 year, 10UST = 10 year, etc..

NAPM (PMI) National association of purchasing management (Purchasing Manager's Index)