MBS UPDATE: CHASING FULLER COUPONS

UP IN COUPON!!! MBS is following the yield curve steeper. I have noticed some larger than average reprices for the worse occurring...mutter mutter

FN30______________________________________

FN 4.5 -------->>>> -0-06 to 100-19  from 100-25

FN 5.0 -------->>>> -0-02 to 101-28 from 101-30

FN 5.5 -------->>>> +0-00 to 102-15 from 102-15

FN 6.0 -------->>>> +0-03 to 103-09 from 103-06

The Treasury Auction saw decent demand. Bid to cover: 2.21. Indirect bidders (overseas accounts) took home a whopping 48% of the issuance. Whoa!

Ben Bernanke continues to fend off worries of government bank nationalizations. (Isn't the banking system already nationalized? ) Stocks continue to search for speculative optimism...they're having a tough time locating it....