Swap spreads are mixed today. Two year spreads are unchanged while five year spreads are 1/2 basis point tighter. Ten year spreads are 3/4 tighter and bond spreads have narrowed a full basis point.
One market maker said that corporate issuance was aiding the narrowing of spreads. He also thought that there had been some MBS selling last week which got hedged and the lack of paying from any source has spreads grinding tighter.