MBS UPDATE: UST10YR AUCTION REACTIONS

The Treasury Department successfully auctioned off 18,000,000,000 Ten Year Notes. MBS is steadily improving....

APRIL FN30_______________________________

FN 4.0 -------->>>> +0-04 to 98-23 from 98-19

FN 4.5 -------->>>> +0-03 to 100-24 from 100-21

FN 5.0 -------->>>> +0-04 to 102-02 from 101-30

FN 5.5 -------->>>> +0-05 to 102-25 from 102-20

FN 6.0 -------->>>> +0-01 to 103-10 from 103-09

PRE AUCTION YIELD CURVE....

10 YR NOTE AUCTION

Yield: 3.043% (Slightly higher than pre-auction yield)

Bid-to-Cover Ratio: $38,452,128,700/$18,000,008,700 = 2.14

Indirect Bidders took home 24% of the issuance compared to the 18% that overseas accounts took home in the last 10 yr note auction. Good turnout from the indirect bidders.

POST AUCTION YIELD CURVE MOVING STEEPER. Yet MBS is holding stable and even improving some!!!!!

Jamie Dimon is speaking right now....he said Mortgages need more regulation. Thanks Jamie!

Stocks are moving lower while equity investors mull over their fate