MBS MORNING: Stagnant Stack

Fn 4.0->  -0-03  to 99-28             

Fn 4.5->  -0-02  to 101-08           Gn 4.5->  -0-04  to 101-10

Fn 5.0->  -0-02  to 102-03           Gn 5.0->  -0-04 to 102-10

Fn 5.5->  -0-01  to 102-22           Gn 5.5->  -0-03  to 102-24

Fn 6.0->  -0-02  to 103-09           Gn 6.0->  -0-04  to 103-04

The stack is stagnant so far this morning.  Cheaper MBS prices will bring "bargain buyer" bids back towards  thinner coupons (4.0s and 4.5s). Unfortunately any stack compression will face prompt pressure to take profits, this has resulted in a tight downward trending trading range. Rates should be marginally worse this morning. More commentary to come later in the AM....