FN 5.5 -9/32 at 100-08

After a weak 2 yr Treasury note auction and a Barack Obama press conference where he urged for quick action on another stimulus package, the FN 5.5 is currently trading at 100-08, above the intraday low but still down 9/32 for the session. Since 12pm mortgage backed securities have traded in volatile fashion between a range of 100-16 and the 100-05 floor we set early in the trading session.

The middle of the yield curve is losing a large portion of the gains it made last week after weak inflation reports.The 5 yr Treasury is down 1 point  yielding 2.228 and the 10 year Treasury is down 1.375 points yielding 3.351.