After a better than expected Consumer Sentiment print at 9:55am....stock prices fell and TSY prices rose.

Huh? Wait that doesnt make sense...

Yeh we know! There's that lack of fundamental logic again!!!!! Fundamentals still = phooey.

Prior to the data release the FN 4.5 fell to an intraday low of 99-24. Usually this would warrant an MBS ALERT...but we didnt feel it was necessary, plus we didnt want to ruin your morning :-D. Knee jerk reactions have been a common occurrence in the rate market need to panic.

Since then the FN 4.5 has rebounded to the highs of the day :-D....which brings us to 100-04, FLAT for the day..WOOHOOOO (note sarcasm).  We will likely fall to 100-00 again, might even go lower, but as long as TSYs hold their recent range we should continue to hover around PARNERTIA (dear 10 yr note, please dont break out over 3.54%) and might even move higher if TSYs decide that 3.54% is cheap enough. Choppy price action is now a two week theme.

The dollar has rebound off weekly lows....and SURPRISE!!!....stocks ticked lower (in light volume which makes the moves look more violent, but they're really not).

Rate sheet rebates are indeed WORSE today...