FN4.5 -02at 102-03. GN4.5 -03at 102-22. Secondary Market Current Coupon: +2.4bps at 4.16% CC Yield Spreads:+81.3/10yTSY.+72.1/10yIRS. Tighter all day. Vols deflate into NFP TSYs. 10s:+8.4bps at 3.347%.-23 at 102-05+. 2s least worst performer.+4.8bps at.817% S&Ps:+2.58%at 1098.38. HIGH: 1098.49 LOW ON THE OPEN: 1070.54 The pendulum swings one way, then swings the other... but further this time! Stocks closed near three day highs and benchmark TSY yields went out...near three day highs too! We did manage to make it through the day without reprices for the worse (actually 1 did) though.

FN 4.5's close down 10 ticks at 99-31. Yield at 4.51. Secondary Market CC=4.509. Yield spreads wider. 10yr Tsy down 11 ticks. Yield at 3.865 S&P broke 1200. Up to 1210.65 Mixed technical signals echo fundamental uncertainty Lots of charts tonight, so we'll dive right in. Bottom line, long term charts in MBS don't look too hot: The "not too hot" in this case is derived primarily from being below all the major long term support from February and March (though we'd catch a break looking as far back as early Jan). Still, the difficulties for bonds are palpable .