MBS OPEN: Looming Supply Keeps Market Defensive

Good Morning...

Putting fast money "stock lever" yield curve fluctuations aside...the rates market  is in defensive mode ahead of the Treasury Department's 11am auction announcement of an expected $100bn in new issuance of 2/5/7 year TSY debt (plus refunding of 3s/10s/30s next week).

Ahead of the announcement fixed income buyers have been opportunistically trading the "stock lever" pressured yield curve....but have not removed a conscience eye from the ghost of TSY supply "yet to come. Market participants are positioned in a bearish stance which implies significant drops in benchmark rates may not last long (fundamentally---however that is dependent on the stock lever/fast money influence). Mortgages are indeed nearing the end of a trend channel and looking for new direction. READ MORE about the crossroads in MBS CLOSE...

Since 5pm "Going Out" Marks....

FN30__________________________________

FN 4.0 -------->>>> +0-01   to  99-29   from 99-28

FN 4.5 -------->>>> +0-02   to 101-25  from 101-23

FN 5.0 -------->>>> +0-02   to 102-30  from 102-28

FN 5.5 -------->>>> +0-01   to 103-21  from 103-20

FN 6.0 -------->>>> +0-00   to 104-15  from 104-15

GN30_________________________________ 

GN 4.0 -------->>>> +0-02   to 100-04  from 100-02

GN 4.5 -------->>>> +0-02   to 102-02  from 102-00

GN 5.0 -------->>>> +0-02   to 103-16  from 103-14

GN 5.5 -------->>>> +0-02   to 103-30  from 103-28

GN 6.0 -------->>>> +0-02   to 104-10  from 104-08

EFFECTIVE FED FUNDS: +0.00 to 0.15 from 0.15

LIBOR FIXINGS

O/N LIBOR:  -0.0037 to 0.2025 from 0.2062

1 MONTH:  -0.0025 to 0.4375 from 0.4400

3 MONTH:  -0.0075 to 1.0919 from 1.0994

6 MONTH:   -0.0181 to 1.6394 from 1.6575

1 YEAR:   -0.0175 to 1.9500 from 1.9675