Much remains to be seen this morning and the standard full analysis will follow after more data is released and stocks have a chance to show their hand.

Unless it is a tough day for stocks, it could be a tough day for MBS.  Already this morning spreads have widened again with treasuries outperforming by about 7/32nds.  Nonetheless, MBS are level day over day owing to a dead quiet session overnight.

As discussed, the cards are stacked against MBS today, so unless we get some major weakness from stocks, this morning's rate sheet could be the best of the day.  We'll know more in approximately an hour, but for now, keep your fingers crossed for staying in the black on the day.