The FN 4.5 and 5.0 have broken through the previously outlined support levels and have currently settled at their 38% 2 day retracement levels. Both coupons are currently well off their respective morning highs of 103-00 and 103-02.

FN 4.5: +6/32 at 101-30

FN 5.0: +4/32 at 102-15

It is an up in coupon day as higher yielding coupons are feeling the bid.

FN 5.5: +8/32 at 102-29

FN 6.0: +12/32 at 103-07

FN 6.5 +15/32 at 103-20

Aggressively priced lenders will be quick to pull the reprice trigger while the short end of the stack searches for a trading range. This is no reason to panic. we still expect rates to go lower!!!