Wednesday 10/22 ... Not an Outright Sell-Off

After a secret morning meeting with the Ninja and some additional research, we wish we had more exciting news for you. The mini-sell-session has stabilized and is hanging on at 100-14, although on a bad note, we do have a pronounced classic example of a downward trend channel so far this AM.

5.5's are currently at 100-14, which is 3 ticks down from closing levels. Not too bad...

The reasoning for weakness is a simple correction in the absence of significant headline risk or movement from TARP, et. al...

Analysts would like to have seen more movement on the appointments of the TARP managers.

As they keyboard was ablaze with this blazing torrent of sumptuous data, a headline crossed from from Rick Santelli at CNBC, "Fed will pay higher interest rates on excess balances held by banks at fed. Fed will pay rate 35 BPs below FOMC taget versus prior 75 BPS"

MBS have reacted positively in the short term, which, as history will inform is no indication of movement for the rest of the day.

Stay tuned. We got you covered...