Good Morning...

Putting fast money "stock lever" yield curve fluctuations aside...the rates market  is in defensive mode ahead of the Treasury Department's 11am auction announcement of an expected $100bn in new issuance of 2/5/7 year TSY debt (plus refunding of 3s/10s/30s next week).

Ahead of the announcement fixed income buyers have been opportunistically trading the "stock lever" pressured yield curve....but have not removed a conscience eye from the ghost of TSY supply "yet to come. Market participants are positioned in a bearish stance which implies significant drops in benchmark rates may not last long (fundamentally---however that is dependent on the stock lever/fast money influence). Mortgages are indeed nearing the end of a trend channel and looking for new direction. READ MORE about the crossroads in MBS CLOSE...

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

FN30__________________________________

FN 4.0 -------->>>> +0-01   to  99-29   from 99-28

FN 4.5 -------->>>> +0-02   to 101-25  from 101-23

FN 5.0 -------->>>> +0-02   to 102-30  from 102-28

FN 5.5 -------->>>> +0-01   to 103-21  from 103-20

FN 6.0 -------->>>> +0-00   to 104-15  from 104-15

GN30_________________________________ 

GN 4.0 -------->>>> +0-02   to 100-04  from 100-02

GN 4.5 -------->>>> +0-02   to 102-02  from 102-00

GN 5.0 -------->>>> +0-02   to 103-16  from 103-14

GN 5.5 -------->>>> +0-02   to 103-30  from 103-28

GN 6.0 -------->>>> +0-02   to 104-10  from 104-08

EFFECTIVE FED FUNDS: +0.00 to 0.15 from 0.15

LIBOR FIXINGS

O/N LIBOR:  -0.0037 to 0.2025 from 0.2062

1 MONTH:  -0.0025 to 0.4375 from 0.4400

3 MONTH:  -0.0075 to 1.0919 from 1.0994

6 MONTH:   -0.0181 to 1.6394 from 1.6575

1 YEAR:   -0.0175 to 1.9500 from 1.9675