MBS OPEN: Slightly Weaker To Start, But Major Movers Yet To Come

By: Matthew Graham

Yesterday's Recap

- 15 minutes of fame for World Bank global growth revision to -2.9%... 

- Widespread stock selling/bond buying.  Dollar/Yen gain, commodities sell.

- IMF Chief says US needs stimulus for another year or two, as well as an increase in exports

- Insiderscore.com reports execs selling their shares of stock at fastest pace since meltdown.  Hmmm....

- Dow Ended down 200 (ish). 

- HUGE downward revision as MBA decreases its forecast by $700 bln.

The AM So Far...

- MBS follow tsy's a bit lower in preparation for 2 yr auction today, uncle Ben tomorrow

- Moody's says US AAA rating safe for now, but will need to curb debt to keep it.  (Earth to Moody's...)

- Tsy department insider says 80% funded for 2009. 

- Home Sales and SS confidence index coming up at 10AM eastern

- "Biggie" of the day: 2yr auction at 1pm, but expect further indecision pre-FOMC (tomorrow at 2:15)

 

Charts

 

MBS QUOTES

 

S&P Futures:  +3.80 (+0.43%) to 892.40

6/19 EFFECTIVE FED FUNDS:   -0.01  to  0.24 from 0.25

 

LIBOR FIXINGS

O/N LIBOR:     +0.0062   to  0.2775   from  0.2713

1 MONTH:       -0.0012    to  0.3137   from  0.3150

3 MONTH:       -0.0025    to  0.6075   from  0.6100

6 MONTH:       -0.0125    to  1.1487   from  1.1612

1 YEAR:            -0.0200   to  1.6775   from  1.6975