Uhmmmm...stocks around the world have/are moving lower because of....swine flu fears? I suppose if global flu fears start to pick up economists and analysts will make the assumption that consumers will be more likely to avoid highly populated germ ridden areas like SHOPPING MALLS.

In more quantitative news the TSY yield curve is enjoying some FOMC meeting week lack of interest rate volatility. The 2yr note yield is 0.015% lower while the 10yr TSY yield is 0.056% lower. 2s vs. 10s are 203.29 bps. MBS is benefiting from the flatter yield curve, but before I get too excited about the normal "FOMC meeting" week rate "positivities"...remember $101bn TSY notes are on the auction block this week. This may create some MBS price fluctuations over the next few days. Not sure how much attention the market will REALLY pay to this whole swine flu epidemic...but disregarding that, the TSY market will remain slightly defensive ahead of scheduled TSY refundings and new issuances. The market will also begin to meddle in the metrics "government financial supervisors" used to determine the "stress" currently on banks and bank holding companies. Reminder: the Fed White Paper didnt provide enough details on SCAP.

Read MORE ABOUT WHAT HAPPENED LAST WEEK

Since 5pm "Going Out" Marks...

FN30________________________________

FN 4.0 -------->>>> +0-06  to  100-08  from 100-02

FN 4.5 -------->>>> +0-05  to 102-00  from 101-27

FN 5.0 -------->>>> +0-04  to 103-04  from 103-00

FN 5.5 -------->>>> +0-03 to 103-27  from 103-24

FN 6.0 -------->>>> +0-04 to 104-21  from 104-17

GN30________________________________ 

GN 4.0 -------->>>> +0-09  to 100-17  from 100-08

GN 4.5 -------->>>> +0-04  to 102-07  from 102-03

GN 5.0 -------->>>> +0-05  to 103-24 from 103-19

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

GN 6.0 -------->>>> +0-04  to 104-15  from 104-11

 

EFFECTIVE FED FUNDS:  -0.01  to  0.16  from 0.17

LIBOR FIXINGS

O/N LIBOR: +0.0037  to  0.2087   from 0.2050

1 MONTH:    -0.0025   to  0.4325  from 0.4350

3 MONTH:    -0.0187   to  1.0538  from 1.0725

6 MONTH:    -0.0313  to  1.5900  from 1.6213

1 YEAR:      -0.0319   to  1.8987 from 1.9306

Waiting on GM to announce changes to their VIABILITY PLAN...could move money later in the AM