Notes, bonds, and mortgage backs have slipped as we go into the last hour and a half of trading.  Stocks have been pinched as well, down 75 points on the big board.

With the note off 8/32’s, mortgage backs off 8/32’s, and the 30 year bond down 26/32’s, the trade seems more about consolidation and squaring up before a flood of supply Tuesday through Thursday.  That supply will come in the form of 2 year notes, 5 year notes, and 7 year notes totaling 113 billion.  We don’t see this going too far but just the same, caution is advised.