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As you're aware, immediately following the auction, MBS prices shot down to 100-30, bringing things in line with the worst levels of the week. Tsy's exhibited similar behavior with 10's moving to 3.525. The yield curve steepened further and looked to be inching toward the all time highs. As you're also aware, we were expecting a correction within the range. But as you might not be aware until just now, we got it: The volume coming into the market at this point looks to trump Tuesday's tally, especially with some afternoon data on the way (fed balance sheet, fed MBS buying etc...). Of high importance is the fact that the post-auctions sell off only explored recent limits of the trading range. This lets us know that today's auction was not the massive market event that...