Way behind the curve today as we’ll already entered the second half of the day’s trade.  For the most part, the market has been like watching paint dry.  Total movement in mortgage backed securities has only be 3/32’s (currently up 1/32nd) while stocks opened strong and have held most of their gains (Dow plus 130).

Even the 44bln of 2 year notes that hit the auction block were a non-event as there were no surprises.  For the record, the auction came in on the screws at .802% yield with 44.5% going to indirect bidders.  The issue had an above average bid to cover of 3.16 to 1.  By most traders accounts it was “ham on rye.”