Fast market conditions exist in both bonds and stocks as traders try to adjust to the phrase, “what is value.”  The 10 year note, which was up as much as 10/32’s, is currently down 12/32’s.  Mortgage backs, especially in the low coupon (4.50% to 4.875% note rates) were up as much as 15/32’s in the early going (at pricing time).  Currently, they are up 4/32’s, a drop of nearly .375% in our pricing.  Investors and trading desks alike are reflecting the move, fading prices even more than the 11/32’s we see on the screen.  In total, we see pricing off nearly ½ from the earlier hours.  Keep in mind that markets like these are extremely volatile and can change without notice. 

Be careful out there.