MBS UPDATE: STILL SIDEWAYS

Two way above average trade volumes are essentially cancelling each other out today...with a slight advantage to the seller. (There are buyers and sellers actively participating in trading, there are more sellers than buyers)

Fn 4.0-> -0-04  to 101-07

Fn 4.5-> +0-02  to 102-20

Fn 5.0-> +0-01 to 103-11

Fn 5.5-> +0-00+ to 103-20+

Fn 6.0-> -0-02  to 103-28

There has indeed been word of the Fed buying up available supply from real money profit takers (banks, penision funds, insurance co). Originator selling has been on the ligher side of what we were expecting..perhaps a sign of the looming hedge

Matt's previously described 102-15 support level has held nicely