Heading into the final moments of quarter end, markets are getting a little choppy. BOO QUARTER END CHOPATILITY...HOORAAAY BEER

Red Stripe commercials make me laugh. Since reprices for the worse have already hit your inbox...I thought maybe you could use some comedy (or a beer).

(I SAW SOME REPRICES. VIC SAYS HE DIDNT GET ANY. EITHER WAY HOORAAY BEER)

After hitting an intraday high of 101-16 this morning, an unfriendly trend channel developed and the FN 4.5 fell to an intraday low print of 101-04. Since hitting that intraday low...the FN 4.5 has moved to the middle of the recent RANGE. Currently the FN 4.5 is trading -0-03 at 101-08 yielding 4.3469%. The FN 4.0 is -0-02 at 99-01 yielding 4.1092. The secondary market current coupon is 4.2161%.

Here is the FN4.5 two day...CHOP CHOP around the RANGE

The stock lever has been friendly to MBS at times today and unfriendly to MBS at times today. After a weaker than expected read on manufacturing conditions in the Chicago-land area the S&P sold from 1060 to 1048 (and rates rallied). However as the day progress and oil prices ticked higher, stocks rallied back to 1060(rates sold off). Then, after failing several attempts to break 1060  stocks sold off to 1052, the middle of the RANGE (rates moved off intraday lows back to middle of the RANGE)

Here is the short term S&P chart. CHOP CHOP around the RANGE...

Those support and resistance levels are the 23% and 38% retracement of the most recent bullish trend cycle that began on Sept.3.....

No I am not trying to tell you anything specific here...no subliminal messages or anything....

Its been a choppy day....but the RANGE has moderated directional trending. :-D

MBS, TSY, LIBOR QUOTES

PS...RANGE

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