If we're looking at price difference from yesterday's close to now, we're down 8 ticks, HOWEVER, we are only down a scant 2 ticks from "going out" levels (remember that close is 3pm and "going out" is 5pm). There was a fair amount of weakness yesterday after the close and we are noticing more and more lenders jumping on late day price changes whereas they have not been as likely to do this in the past. So effective at least for the rest of the day, we'll base our "ticks up" or "ticks down" on the "going out" levels.

With that in mind, things look nicer...

2 ticks down in 5.5's, unchanged in 5.0's, 4 ticks up in 6.0's.

UST's are up 4 and 10 ticks in 5's and 10's respectively.

So let's wait and see what the day holds. It seems, with respect to spread product, that the market is digesting implications of the Fed's Loan-Shark Bailout of AIG.

Back with more as the day unfolds...