From MBS Live! earlier this morning: "With no data on tap, and only a few Fed Speakers, the most interesting news on the MBS table this morning are the several angles approaching the possibility of renewed Fed purchases in MBS, not the least of which came from the Fed's own Tarullo last night, followed up by WSJ's Hilsenrath this morning. Nothing other than speculation at this point, but with a fed official discussing it and an op-ed writer who is generally thought to be in tune with the street and Fed policy writing a piece on it, it's at least something to consider."  MBS have been noticeably tighter to Treasuries today, even with latter being the subject of some Fed purchases this morning.

But the interesting possibility for the mortgage world don't end there. 60 vs 38 senators voted late yesterday to extend loan limits for two more years. Nothing heard about prospects for the House, but we wouldn't start calling those $729k loan amount borrowers just quite yet... 

MBS and Treasuries had been under pressure recently, but have since bounced back.  Still, don't rule out the possibility of volatility later in the session. Liquidity and volume will probably taper off after 12 noon, exaggerating moves, and markets remain intentionally susceptible to the slightest hiccup of a headline from Europe, not to mention the general pitching and rolling of equities markets with the  varying degrees of Optimism over this weekend's EU Summit.