In yesterday's CLOSE, we discussed  a potential bottoming occurring in MBS prices around 100-17 suggested by the early visual cues of a sort of "parabolic correction."  In other words, prices looked to be drawing a "U" shape with the apex near 100-17.  Whether the shape of yesterday's charts really did contain vital insight, or whether 100-17 would just be a lucky guess, that general trend has indeed been the case today.

Not quite as much support for this correction from treasuries, but with auctions digested and some data available tomorrow (including rescheduled retail sales), perhaps decent fundamentals can get things going in more of that direction.  For now though, we're in positive territory with the 4.5 up a tick at 100-20, and looking to go out the door fairly close to that.