MBS UPDATE: Off The Lows, But Only Just

APRIL FN30_____________________________

FN 4.0 -------->>>> -0-04 to 100-07 from 100-11

FN 4.5 -------->>>> -0-06 to 101-27  from 102-01

FN 5.0 -------->>>> -0-03 to 102-28 from 102-31

FN 5.5 -------->>>> +0-01 to 103-18 from 103-17

FN 6.0 -------->>>> +0-00 to 104-02 from 104-02

APRIL GN30_____________________________

GN 4.0 -------->>>> -0-04 to 100-13  from 100-17

GN 4.5 -------->>>> -0-04 to 102-01 from 102-05

GN 5.0 -------->>>> -0-01 to 103-13 from 103-14

GN 5.5 -------->>>> -0-03 to 103-28 from 103-31

GN 6.0 -------->>>> +0-02 to 104-09 from 104-07

The 4.5 Fannie bottomed out about 20 minutes ago just under 102-26.  At the lows of the day, there is always a slight risk of reprices for the worse, but we have descended to them so gradually and slowly, that the damage would not be severe.  MBS are under pressure from a very bullish stock rally (Dow up almost 400 points) and a concomitant treasury sell bias (10 year down 10 ticks).  So MBS have tightened a bit and we are holding our ground well, but as AQ indicated earlier, our prices are currently too high to give way to much of a rally.  To the extent that this stock rally has legs or that treasury selling persists, we could see continued weakness into this afternoon, so GUT-FLOP accordingly.  I'll post today's chart and analyze it versus Friday's close in today's end-of-day post.