Yesterday's Recap

- MBS woke up the morning after without the urge to gnaw its arm off.  That sentiment still holding.

- Another well received tsy auction, this time 7yrs.

- Tsy's rallied big, MBS lagged a bit by comparison despite earning facemelter status from a pure price perspective.

The AM So Far...

- Until a few moments ago, tsy's had been drawing a line in the sand at 3.53 on the 10yr that was more clearly delineated than that caused by a few rounds of golf and Art Cashin's sunglasses.

- Incomes and outlays show income rose compared to spending.  Spending came in at the consensus of 0.3, but incomes crushed their 0.3 consensus with a 1.4 read

-  Consumer sentiment yet to come.  MBS and tsy's got a miniature boost from recent data.

- Anything can happen

THE RATES PAGE 

Charts

 

2s vs. 10s: 240bps

6/25 EFFECTIVE FED FUNDS:   -0.02  to  0.19  from 0.21

LIBOR FIXINGS

O/N LIBOR:     -0.0088   to  0.2650   from  0.2738

1 MONTH:       +0.0025   to  0.3100   from  0.3075

3 MONTH:       -0.0037    to  0.5975   from  0.6012

6 MONTH:       -0.0187    to  1.0950   from  1.1137

1 YEAR:           -0.0538    to  1.5912   from  1.6450