The short side of the MBS stack, your rate sheet coupons, has lost steam in its attempted recovery efforts since TSY yields began rising around 10am....

The fuller side of the stack, the profit takers money market account, continues to slowly outperform thinner coupons...UP IN COUPON remains bias in effect!!!

APRIL FN30_____________________________

FN 4.0 -------->>>> -0-05 to 100-03 from 100-08

FN 4.5 -------->>>> -0-05 to 101-24  from 101-29

FN 5.0 -------->>>> -0-04 to 102-25 from 102-29

FN 5.5 -------->>>> -0-03 to 103-14 from 103-17

FN 6.0 -------->>>> -0-01 to 104-03 from 104-04

APRIL GN30_____________________________

GN 4.0 -------->>>> -0-06 to 100-06  from 100-12

GN 4.5 -------->>>> -0-05 to 101-29 from 102-02

GN 5.0 -------->>>> -0-03 to 103-10 from 103-13

GN 5.5 -------->>>> -0-03 to 103-26 from 103-29

GN 6.0 -------->>>> +0-00 to 104-10 from 104-10

FN 4.5 STALLING OUT AS UST10YR YIELDS DECIDE TO MOVE HIGHER

FN 6.0 SLOW AND STEADY DEMAND FROM UP IN COUPON-ers...

Mortgage rates are slightly higher today on average. Based on when investors published rate sheets we are not at risk of reprice...will inform if we enter "reprice for the worse" territory.

According to the FHFA...

US home prices rose by 1.7% in January, the first monthly increase since February 2008!!!

Isnt it odd that the FHFA's sample data indicates home prices rose considering both new and existing home sales data indicate the opposite. Eh its not that big of an increase anyway! Here is how the FHFA explains their data...

"The FHFA monthly index is calculated using purchase prices of houses backing mortgages that have been sold to or guaranteed by Fannie Mae or Freddie Mac. For the nine Census Divisions, seasonally-adjusted monthly price changes from December to January ranged from -0.9 percent in the Pacific Division to +3.9 percent in the East North Central Division.

Month-to-month changes in the geographic mix of sales activity explain most of the unexpected rise in prices in January. The January home sales reflected in the FHFA data disproportionately occurred in areas with the strongest markets. While it is difficult to perfectly control for changing geographic mix in estimating house price indexes, the data suggest that if one were to remove those effects, the change in home prices in January, while still positive, would have been far less dramatic.

It also should be noted that sales volumes, in absolute terms, were relatively low in the month. Accordingly, the estimation imprecision associated with the January estimate is relatively large and subsequent revisions to the monthly figure could be significant."

Bernanke and Geithner spending lots of time talking about things other than AIG....

Bernanke says PPIP (Geithner Toxic Asset Plan) and TALF carries little to no credit risk for the Fed. Other discussions have revolved around compensation practices within the financial industry.

Stock market are off the lows of the day but still in the negative as energy stocks and bank stocks fall....DOW currently down 64 points. S&P  down 9.23. NASDAQ down 20