MBS OPEN: Early Morning Cliff Diving

By: Matthew Graham • Fri, Dec 12 2008, 8:19 AM

Those with overnight price protection might consider using it. 5.0's are down 9 ticks to 101-14. As we'll discuss shortly, we expect the failed auto-bailout to have a widening effect on spreads, especially since we were expecting spreads to correct sometime soon anyway.