MBS traded sharply lower over the weekend with the 5.5% coupon dropping to 100-11. We've made it back to 100-14 so far this morning.
There are no scheduled releases today, but the rest of the week is action-packed with inflation data, consumer data, and a chance for the Philly Fed Survey and Empire State Survey to show us that their upbeat numbers last time were not an anomaly (let's hope they show us nothing of the sort!).
As we've been trending upward so far this morning, floating with caution is the way to go. So be sure to stay tuned though because if we analyze the broader price trends in recent memory, we see that as the price of the 5.5% hits 101-00, it tends to go down for more than 2 days. Still, "so far so good" this morning (just not from the starting point we would have liked to have had).