• MBS gained moderately yesterday despite drama
• Stocks were actually down.  Wait...  What?
• 2 yr auction not well received by bond markets
• Today brings a more pertinent 5 yr auction
• Durable Goods are out already this morning, coming in weaker than the worst estimate
• Excluding transportation, durables were right in line with expectations, this lessens the impact
• Even so, all eyes on the 5yr auction to see if it can stir up a more heady Bid to cover and better foreign participation

MBS, Tsy, and LIBOR Quotes