Yesterday's Recap

- Volume moderately higher than 30 day average

- Subdued supply + flattening yield curve = Happy MBS

- 5.0's back in "the zone"

- steady buying led by Fed and Money Managers


The AM So Far...

- Testing suggested support from yesterday (see chart below) as early AM trading mirrors yesterday's (weak start)

- 5.0's currently down 6 ticks to 101-16.  4.5's down 4 ticks to 99-15

- Waiting on CPI to be out shortly

- Dr. Ben at 9AM

- MBA says purchases down 3.5% and refi's down 23.3% last week.





Stay tuned as current price levels are important. 

(update inserted at 8:36AM...  CPI in.  core up .1%.  fixed income likes it.  bounce lines bounced.  back in line with yesterday's closing levels.  stay tuned for AM post)