Yesterday's Recap

- Tsy's Rallied as MBS rallied a bit less...

- Super Mega 2yr auction, but no one cared

- Low Volume, Low volatility before Fed

The AM So Far...

- Durable goods up 1.8%, Tsy's and MBS sell sell sell...

- Massive injection from ECB, libor breaking all kinds of records..

- Fed still the headline, but Durable goods results not friendly

- Spreads dramatically tighter as tsy's sell appreciably while MBS hold within an eighth of steady



(these DO NOT include the recent impact of durables.  Check the rates page for latest changes)

Here's an idea of the longer term:


Finally, here's a little easter egg I put together for you last night just to give you cliff notes on Fed meetings over the last year set against the backdrop of MBS prices.  Read into what you will.  I have no educational agenda in posting it.  What are your thoughts?  What is this chart telling you?  You'll probably need to click through to a larger version, which is HERE.

S&P Futures:  +9.30 (+1.04%) to 899.50

6/23 EFFECTIVE FED FUNDS:   +0.00  to  0.24 from 0.24


O/N LIBOR:     -0.0019    to  0.2756   from  0.2775

1 MONTH:       -0.0025    to  0.3113   from  0.3137

3 MONTH:       -0.0031    to  0.6044   from  0.6075

6 MONTH:       -0.0175    to  1.1313   from  1.1487

1 YEAR:           -0.0375    to  1.6400   from  1.6775