That was both a salutation and descriptive phrase for the MBS market. Trading is pretty heavy at the moment and we're anywhere from 4-7/32nds improved over yesterday bringing the 5.5% coupon the big leagues at 101-00.
Just one economic release today, International Trade, showed a better than expected level of exports. This is not a major mover of the MBS market. The mover is fear. With AIG reporting a record writedown, and oil pushing ever higher into record territory, there are legitimate concerns about growth. So investors "play it safe" by buying bonds. Yet again, the 10 year treasury and the MBS are not tracking well. The fact that AIG's writedown has to do largely with mortgage-related debt could be a key factor here.
More detailed report to follow later this morning, but for now, float cautiously.