Last Word From The Bond Pit

A WORD FROM THE BOND PITS: Selling volume was somewhat lighter today with 80% concentrated in the 3s to about $2B total but the Fed easily scooped up that supply as it averages $3B in buying per day. CLOSING TECHNICAL SIGNAL: We will continue to float but we are closely watching resistance that halted gains on October 12 and subsequently sold off after that. If pricing is favorable and you are just a a few days from closing a file, locking may be prudent. MARKET WRAP: Mortgage Bonds produced solid gains today as Stocks dropped and the auction saw a stellar performance. The 3% coupon rose 34bp to end the session at 105.47. The Dow fell 121.41 points to 12,811.32, the S&P 500 dropped 17.02 points to 1,377.51 and closed below its 200-Day Moving Average, not a good sign. The Nasdaq lost 41.70 points to 2,895.59. Oil was last seen at $85.05/barrel up 61 cents. Tomorrow, Consumer Sentiment will be released.