For a moment there, with Frannie two Mondays ago and Lehman/Merrill/AIG the next Monday, surely it looked like we were on a set schedule. It would have been forgivable if the RTC portion of the plan announced last night was the extent of this most recent tape bomb as good surprises are less unsettling than bad surprises. But as another part of the plan was announced, the surprise for bond markets was anything but good.

Treasuries are down over 60 ticks in 5 yrs, and closer to 85 ticks in 10 yrs. Yup, that's a lot.

In that light, the 17 tick slide in MBS might be a bit less nauseating. (100-09)

The outlook for the rest of the day is uncertain. Spreads have tightened more in the last 12 hours than in the 12 hours following the Frannie Bailout! That at least provides some optimism. But beyond a positive mid to long term outlook (2-4 weeks), the rest of today and likely the entirety of next week is anyone's guess. If you have overnight price protection, consider using it. If not, you just got pushed off the bridge! Welcome to Bungee Jumping!