The post 3pm trade in MBS and Tsy's is showing it's characterstic signs of waning participation as volatility and volume decrease.  But unlike some other day's, that's not a bad thing at the moment.  Since books shut (3pm = time used to "mark" end-of-day price levels in bond market, aka "in the books," even though trade continues after 3pm), we're up 4 ticks or so from 100-12 to 100-16.  Regardless of any late day variations in price, they will likely not be big enough push us below the support levels we've been watching for the past few days at 100-12 and potentially even 100-14, though the latter is a bit closer of a call. Closing at 100-16 would mark the 2nd day in a row of a 1 tick change on the day.  The chopitility in between those bookends should, at least in part, hearken back to the heady days of summer and the trader's paradise.

Perhaps more importantly at the moment in terms of "range-holding" would be 10yr futures.  Volume hasn't spiked above 1 mln on the October contract, until today.  That high volume coincides with the resistance level we mentioned yesterday of 116-26 or 116-28 depending on whether you go with MG's technical horiztontal line or AQ's comments on high volume marks.  Knowing us, it will probably be 116-27 officially...  Anyway, check it...  When volume like this coincides with such an obvious support level, it's akin to big voter turnout in favor of keeping the contract over that level.  We just hope the election results aren't challenged by the bond bears tomorrow...

MBS, Tsy, and LIBOR Quotes