Last Session Recap

  • 3yr auction sees decent demand offset by a higher than expected yield
  • reactions were mixed until stocks sold late day, pulling tsy yields down on the FTQ (flight to quality)
  • Stocks at worst and bonds at best levels since May
  • Stimulus 2.0?

The AM So Far...

  • Up a few ticks so far as "down in coupon" takes some practice swings before 10yr auction later today tells us how much everyone in the lower stack is worth...
  • 10 yr auction later today (1pm) tells us how much everyone in the lower stack is worth
  • translation?  The yield curve is the primary force driving MBS these days.  Lower coupon (4.0 and 4.5) are more closely approximated by 10yr duration than by yesterday's 3yr. 
  • Nada on the data-0-meter so far unless you care about store sales and redbook. 

MBS QUOTES (and other cool stuff)

Charts