You may see the 10-year Treasury Skyrocketing after the Fed pulled out it's syringe full of 200 billion dollars to inject credit markets with a much needed fix.

MBS however are holding steady, dancing around unchanged for the day.  

 Why?  Well I certainly could be missing another factor, but one of the key factors is that the recent selling in MBS markets has been, in part, due to a lack of liquidity.  Expanded liquidity could attract new investors.

Our base curve line didn't really jump much on the  news.

On a final note, we certainly have plenty of room to close the gap on the 10 year treasury, so I'm not concerned about the "quality vs. safety" concept until we get the next raft of mortgage data.

 I would float until further notice considering the positive reaction (or rather, "not negative") of the MBS market compared to the treasury bond market.  But do stay tuned and be ready to lock loans in process.  It's already been an extremely high day for volume.