Since the previous lock alert, the 10yr has coughed up a few more bps pushing yields up to yesterday's 10AM marks at 3.5+.  Volume has spoken up in support of those levels however and MBS have consequently stabilized at 101-00. 

But stabilized is a relative term following tsy auctions.  It's possible that yields are more or less "where they want to be" after the necessary short covering at this auction, but with slightly stronger than expected auction results, the post auction yield increase is not as severe as it might have been.  Bottom line: even though we've seen and may continue to see a reprice or two, today's results suggest a range and shouldn't lead to any shift in trend.  On the fence again and importance shifts to Thursday's 30yr auction.

The primary purpose of this commentary is to get you an updated chart and official results.  In other words, the presence of two commentaries close together is by design and not to suggest an incremental amount of weakness in the market...