RECOVERY today...whew. FNMA 4.5% came UP by 56 basis points...Rates may recover a bit tomorrow...even if we see a little pull back in the market
due to profit preservation. Rate on the 30 year in the 5.5% range.

37 BILLION dollars of T-notes to hit the auction block tomorrow and the bond market WILL react if the auction is not received well.
Remember that all is perception and if there is a general perception that "other people" are "not" investing in bonds...investors pull out.
We will have to see how the auctions go for the rest of the week.

Have a great eve!

Chad