The stack continues to take its directional guidance from TSYs. Remember the recent trend...MBS grow weaker as TSYs rally which brings about profit taking. MBS strengthen as TSYs yield move higher which brings back MBS buyers.  MBS demand/liquidity remains high so large sell offs would only result from headline news/tapebombs...

APRIL FN30_______________________________

FN 4.0 -------->>>> +0-03 to 99-05 from 99-02

FN 4.5 -------->>>> +0-03 to 101-06  from 101-03

FN 5.0 -------->>>> +0-03 to 102-14 from 102-11

FN 5.5 -------->>>> +0-03 to 103-03 from 103-00

FN 6.0 -------->>>> +0-01 to 103-21 from 103-20

APRIL GN30_____________________________

GN 4.0 -------->>>> +0-02 to 99-05  from 99-03

GN 4.5 -------->>>> +0-03 to 101-11  from 101-08

GN 5.0 -------->>>> +0-03 to 102-28 from 102-25

GN 5.5 -------->>>> +0-01 to 103-13 from 103-12

GN 6.0 -------->>>> +0-04 to 103-29 from 103-25

FN 4.5 Yield vs. UST5YR