MBS MID-DAY: Choppy, Sideways Range, Little-Changed From Friday

The week is off to a fairly anticlimactic start, belying the initial volatility seen after the Greek elections early in the overnight session.  10yr yields have traded a respectably wide range of 1.75 to 1.84 overall, but only made it as low as 1.799 during domestic hours so far.  The bounce back into weaker territory is primarily a factor of steadily weaker trading levels in Eurozone bond markets and, to a lesser extent, a bounce back in equities markets after tanking out of the gate in overnight futures trading.

Apart from the tradeflow reaction to Greek elections, we haven't seen any salient market movers so far today, and there are no high-probablity events on the calendar.  From a technical perspective, 10yr yields bounced nicely at 1.84, and that continues to be a line in the sand we'd watch as an indication of a potential shift in momentum.  102-16 continues to be a good analogous level in Fannie 3.0s.