MBS OPEN : Treasuries leading the way down: MBS Follow

Current MBS Price and Day Over Day Change:

FN 5.5 30YR MBS = 99-30  .... -0-19 (19 ticks)

After blowing out to all time wide spreads yesterday, it's no surprise that we are tightening slightly this AM, but not nearly as much as we would like.  On the risk-free front, after blowing out to all time low yields yesterday, it's also no surpris.e that tsy's are selling like a Cutco Kiosk at the state fair.  The 10 yr is down -1-12 (44 ticks) and the five year is down 20 ticks.

We weren't expecting to find much more support for MBS through the end of the year anyway, but the markets are currently beating us over the head with that blunt object of truth.  Those with overnight price protection should consider cashing in.  Those precious few lenders that released rates between 8 and 9AM will soon be repricing for the worse in grand fashion.  Everyone else will have to join the masses in waiting to find out just how bad the pain will be.

No data today + crazy times in the fixed income sector = massive volatility for MBS today.  Buckle up.