MBS- FNMA 4.5 price: 100-07

10-yr Treasury Yield: 3.82%

More on interest rates and where the predicting-set think they’re going:

TOKYO (MarketWatch) — St. Louis Federal Reserve President James Bullard said Monday that U.S. interest rates may remain low for “quite some time,” easing concerns over the potential for an interest-rate hike and helping to pull the dollar lower against its currency rivals.

“Policy rates are near zero in the U.S. and the rest of the [Group of Seven] countries, something not seen in postwar economic history,” Bullard said in an address to a conference in Shanghai. “Interest rates may remain low for quite some time.”   Link to article…

I continue to contend that this is the story of the decade:

Jan. 6 (Bloomberg) — The U.S. should “explicitly” regulate derivatives dealers, said Gary Gensler, who has pushed Congress to impose new rules on the $300 trillion over-the- counter derivatives market.

Gensler, chairman of the Commodity Futures Trading Commission, has asked Congress to give the commission the power to regulate over-the-counter contracts to police commodity speculation that is outside of regulated exchanges.  Link to article…