MBS ALERT: Auction Results Out

- 2.58 Bid To Cover (pretty good)

- 2.70 high yield (potentially a tad high)

- 23% at high yield (lower than normal, which is positive)

- 67% indirect (strong foreign demand, which is open to interpretation)

- But overall, this auction is probably better than it is worse.  Initial reactions from MBS and treasuries have been moderate gains.  Too soon to call the ball, but we're pushing against best ranges of the day as we wait another hour for FOMC.