MBS UPDATE: Auction Results Out And Favorable

Granted, the 30yr bond is one of the least important tsy's we could examine, the auction was quite good with the high yield falling in line with pre-auction levels.  That's uncommon.

Bid to cover was 2.68.  Indirect was also 49%

This being the long bond, it's a huge vote for duration.  As lower MBS rates have the longest durations, this should make for an acceleration in our already aggressive affinity for "down in coupon" movement.