MBS AFTERNOON: Slight Selling Coincides with Madoff Ruling

After a judge declined a motion to revoke the Bail for Bernie Madoff, MBS have sold 3-5 ticks.  Reprices for the worse may follow, but we are still within the day's trading range.  If we slip further, reprices may become more likely.  At this point, long term floaters should still not panic.  Even short termers should likely hold out for potential price spread easing beginning tomorrow unless the selling gets ugly.  If it does, we'll let you know.