The MBS stack continues to follow TSY selling this morning. The stack is trading at its lows of the day...on the bright side MBS is not doing AS BAD as the yield curve. Spreads are now tighter across the stack with the 5.0 looking the most attractive spread wise (currently 4 ticks tighter). 

Rate sheets will be worse this AM...

920am marks

FN30__________________________________

FN 4.5 -------->>>> -0-10 to 100-23 from 101-01

FN 5.0 -------->>>> -0-06 to 101-28 from 102-02

FN 5.5 -------->>>> -0-04 to 102-15 from 102-19

FN 6.0 -------->>>> -0-02 to 103-04 from 103-06

Remember all this government spending needs to be paid for some how...more Treasury Bills, Bonds, and Notes!!! More Supply = Steeper Yield Curve

TSY trading thus far...