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FNMA 3.5
103-18 : +0-05
FNMA 4.0
105-11 : +0-03
FNMA 4.5
106-22 : +0-02
FNMA 5.0
108-01 : +0-02
GNMA 3.5
105-04 : +0-05
GNMA 4.0
107-26 : +0-05
GNMA 4.5
109-09 : +0-03
GNMA 5.0
111-06 : +0-06
103-10 : +0-05
104-31 : +0-03
106-06 : +0-03
107-23 : +0-01
Pricing as of 11:04 AM EST
Morning Market Updates
A recap of MBS Market Updates provided by MND Analysts and streamed live to the MBS Live Dashboard.
9:59AM  :  ALERT: MBS Pop Higher on Meeting Delay Rumors
Greece had been slated to announce the terms of Private Sector Investors' involvement in the bailout. This was expected to follow Wednesday's Eurogroup meeting and to indicate a hefty 70% haircut. Rumors that this announcement will not only be delayed, but could point to even bigger haircuts is currently fueling a bid in Treasuries, as well as the biggest pop of volume on the day.

10yr yields ticked into positive territory, down almost 1bp from Friday's latest levels at 1.9758, but not quite down to 3pm levels yet (1.969). MBS are a few ticks better than last check, currently up 1 tick on the day at 103-15, in the middle-to-high end of Friday's trading range.
9:04AM  :  ALERT: MBS Only Slightly Weaker as Greek Deal Waits on More Meetings
Bond markets begin the week in slightly worse territory than Friday's after Greek parliament voted to approve the austerity measures requisite for the country's bailout funds. The overnight session was not especially brisk in terms of volume or volatility. Because the Greece news was out by Sunday afternoon, we simply saw a moderate pop of volume at the European open, but this only equated to 10yr yields rising from 2.0 to 2.026.

That's because the passing of austerity, in and of itself, doesn't guarantee that the next aid tranche will be released. That fate is set to be decided on Wednesday at a Eurogroup meeting, which is incidentally a follow up to last week's similar meeting after Greece was unable to meet the austerity requirements to get approval.

MBS are holding their own in early trading with Fannie 3.5's on the verge of breaking even on the day, currently down only 1 tick at 103-13. 10yr yields are 1.25bps higher than Friday's latest levels at 1.9965. Despite a pull-back from overnight highs, S&P futures are still roughly 10 points higher versus Friday's close.

For the week's full economic calendar, see "The Week Ahead" below:
8:07AM  :  Greek Austerity Vote Lifts Euro
(Reuters) - Relief over the passing of sweeping austerity measures by the Greek parliament saw stocks and the euro gain on Monday, but with several issues still to be resolved before the shadow of a messy debt default is lifted, gains were fragile.

U.S. stock index futures pointed to a recovery for equities on Wall Street after delays in agreeing the Greek bailout deal last week caused the S&P 500 index to suffer its biggest loss of the year on Friday.

"People were losing patience with Greece. In the end they got their act together and it's definitely a positive," Markus Huber, head of German sales trading at ETX Capital, said.

Before Greece can secure a second rescue and get the $14 billion euros it needs to meet debt repayments due on March 20 it must still explain how a further 325 million euros ($428.6 million) of spending cuts will be reached, and give its nervous creditors binding assurances the full plan will be implemented.

The focus is now on a euro zone finance ministers meeting on Wednesday that is due to decide on approval of the next 130-billion euro aid package.
Featured Market Discussion
A recap of the featured comments from the Live Discussion on the MBS Live Dashboard.
Victor Burek  :  "so the next leader of Greece is saying pass this now..so we get the money, then we will change the terms afterward...is the EU dumb enough to give them more money?"
Victor Burek  :  ""I am calling on you to vote for the new loan agreement because I want to avoid falling into the abyss, to restore stability," he told Sunday's parliamentary debate, "so that we can have the possibility tomorrow to negotiate and change the policy that is being imposed upon us today." "We have to exist first to be able to change it." "
Victor Burek  :  "here is what he said..and the elections are in april"
Andrew Horowitz  :  "heard some interesting chatter this morning, thought I would share, the best thing for Europe would be Greece defaulting, if not and the bailout comes to pass, the contagion would spread faster and easier to the other PIIGS, most of the banks have already wrote down most of their greek holdings and it would send the proper message to other nations that will definitely line up behind"
Victor Burek  :  "Greece..who is ahead in the polls has already vowed to renegotiate the bill that was passed last night"
Victor Burek  :  "the next leader of ""
Matt Hodges  :  "interesting that the 3 major parties in parliament have expelled numerous members who voted no"
Andy Pada  :  "you have to think that at some point there is going to be a relevant political party who will promote the leave the Eurozone platform and that this party will get a significant % of popular support."
Matt Hodges  :  "with the rioting and two more votes in greece, didn't think we'd be hurt - but nonetheless a nice turnaround from 10 yr -10"
Matthew Graham  :  "interesting insights into dynamic between Germany and Greece: http://www.reuters.com/article/2012/02/13/eurozone-greece-germany-idUSL5E8DD5C520120213"
Jeff Anderson  :  "GM, all. Down 3 ticks. zzzzz. Someone's not buying the Greece deal yet."
Matt Hodges  :  "Greece, rioting, 10 year saying "chill""
Andrew Horowitz  :  "nice quiet market"
Matt Hodges  :  "nice recovery in the 10 year"