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Today's permanent open market operation (aka: POMO) for the NY Fed is in the very relevant 7-9 year maturity range (originally 10yr Notes). All too often, the 11:00am conclusion of POMO leads to at least a modicum of volatility in bond markets and sometimes an outright reversal.

Both 10's and MBS look to be hitting their best levels of the day right at the POMO conclusion, and right as the 10yr approaches the well traveled pivot at 1.97. We'd expect some measure of resistance here anyway, but are on guard for it being more pronounced due to the timing. Fannie 3.0s are currently up 12 ticks at their own important short term inflection point at 103-16.

More from MND:

• MBS Commentary: MBS RECAP: Apocalyptic Catalogue of Reprice Alerts
• Mortgage Rate Watch: Mortgage Rates Annihilated; Brief History of All-Time Lows
• MBS Commentary: MBS SPECIAL ALERT: Bernanke Confirms Stabled Stallion
• MBS Commentary: Differences Between Past and Current FOMC Statements
• MBS Commentary: MBS MID-DAY: Yesterday's Gains Erased Ahead of Fed

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