MBS AFTERNOON: MBS beginning to lag, but still getting a boost from T Bill auction.

0.000% on 4 week T Bills has a bit of fixed income demand perked up.

MBS have caught a bit of a boost from that and we're now over 101-00 to 101-02+ which is 10 ticks up on the day in 5.0's.

Our internal trendlines from this morning has held true all afternoon although we're doing so well right now we're risking an upside breakout.

Graph to follow on that as well as additional reprices for the better.

Our internal trendline from this AM has been redrawn in dashes and the upper and lower trend channel lines added.  It's a thing of beauty, but again, it's not predictive of where we will go, it's a "trigger," so that if we go appreciably past the lower trendline, we might be concerned about continued weakness.