This morning mortgage banks took advantage of high dollar MBS bids (a lot of YSP) and locked in some profits to protect their pipelines from interest rate risk. We're you locking loans today? Today was a good day to lock based off the blend of investor rate sheets I monitor. On the other side of the coupon stack day traders took profits of their own when MBS/TSY yield spreads tighened up in the mid afternoon.

This afternoon Bill Berliner will post his Weekly Commentary. Matt and I just finished reading and we think it may help clarify yield spreads and their application to MBS pricing and mortgage rates.

Since 5pm "Going Out" Marks....

FN30_______________________________

FN 4.0 -------->>>> +0-02  to 100-09  from 100-07

FN 4.5 -------->>>> +0-01  to 102-02  from 102-01

FN 5.0 -------->>>> +0-00  to 103-09  from 103-09

FN 5.5 -------->>>> +0-00  to 104-04 from 104-04

FN 6.0 -------->>>> +0-03  to 104-29  from 104-26

GN30________________________________

GN 4.0 -------->>>> +0-02  to 100-16  from 100-14

GN 4.5 -------->>>> +0-02 to 102-11 from 102-09

GN 5.0 -------->>>> +0-00  to 103-29  from 103-29

GN 5.5 -------->>>> +0-00  to 104-13 from 104-13

GN 6.0 -------->>>> +0-02  to 104-27 from 104-25