MBS UPDATE: STRONG DEMAND FOR LONG BOND

Following the Treasury Department's successful auctioning of $11bn 30 yr bonds...MBS remains range bound

APRIL FN30_______________________________

FN 4.0 -------->>>> +0-05 to 99-01 from 98-28

FN 4.5 -------->>>> +0-07 to 101-01 from 100-26

FN 5.0 -------->>>> +0-03 to 102-07 from 102-04

FN 5.5 -------->>>> +0-05 to 103-00 from 102-27

FN 6.0 -------->>>> +0-02 to 103-16 from 103-14

The Long Bond Auction Went Well....

Bid to Cover: 2.40 (historical average near 2.10)

Indirect Bidders took home 46% of the issuance.

At 1pm the long bond was trading at 3.68, the auction high yield was 3.64%...GOOD DEMAND!!!