Performance: We Are still MBS stukajac? What is at stake here?

MBS price movement should not be underlined, today. Not yet. Very defensive, but wood should draw up user. Not yet....

So, we went down in the day. Yes, this looked good until 2 pm, but to quote myself: "this is reality in the bond market would range."

And we can't forget: We operate with a handicap in such a way as if in a can and will used in relation to the bond market.  The items are in the grace and bonds are cast from the garden.

With this in mind, today was completed with lower prices, because the MBS offers several possibilities for pressure rate lower prices were taken advantage of by the operators. These opportunities are almost always these days.  Is that really, it is easy to explain the basic offer for bearish momentum that still have to be reversed.

In large images when pricing the loan is still a very sensitive area, we have only level closer to the ' projection '. And still we have one of the two main, high volume trading before the current market "best execution" skip to 5.375%.   We need to see the White sale before so ... ... do not want to display it, however. You really is. ..

See, which means by the defensive? It only takes a few consecutive down days. This means that the time is always just around the corner. BE DEFENSIVE.

What is at stake here after all. 5.375% of Best execution.

So why are we would end up with the Matterhorn at the end of the day?

Combination of cause really, and the mixture of responsibility among them more than the next is debatable.  Certainly we know that deficit to hit its second highest level ever reported has been at the same time of the sale got mobile monokrystalicznych.  So I would suspect that short list for sure.  Were also received from the Fed's Lockhart to speak zagluszyc with high enemployment about 15 minutes later.

And, of course, talk of the town of mortgage and, after about an hour later, during the early details of the Obama administration's white paper on GSE reform were made available information. The weakness of mortgage focus as it relates to the preparations for the "Snowball" could have forced some investors to sell part of the Treasury, as well. We call this the "extension".  In the sense of the impact of the Reform white paper album GSE on MBS market quotes and current coupon ...This "event" header "is already took on as a motivation for the day of the fast money traders, who need the Axe to grind. The yield spreads are actually more to lower prices today, so the risk implied heading will likely be pointed to as the reason behind it. Lower, wider has rarely last though. We just recently rich valuation and now you are stukajac us to offset the duration bias.  Would this coupon MBS production until 5.00% lead and "best execution" mortgage rates higher (5.375%). learn more about the SHIFT in the production of COUPONS

But the Treasury will show a chart, you can not much happened.  Feeling "optimistic" morning?  Trade yields according to the axis of rotation.  A little bit queasy ' bout of uncertainty budget Gap and the white paper in the afternoon?  Trade back stating, the axis of rotation.  You can go home now?  Or ... go ahead and show some support around MBS nominal value and 10 yr some support around 3,72, keeping each of these markets, limited to say ... the loss of 8 ticks on?  Then the user is free.

What mixed picture. Recently we have seen a lot for short. So perhaps this is the character that will hold 3.70%.

Tomorrow's economic candidates based on the report of concern include the trade balance at 830 m ' i'm the consumer on 955. Crimson Exploration Inc.  Oh, and GSE reform white paper. More about them, see the consensus estimates and a few snippets from economists at the bottom of the of the Week Ahead.