10-Year Swap Spread Graph

(click on image to enlarge)

BOTTOM LINE: The 10-year swap spread is falling another 4.5 basis points today to 59.0 basis points over Treasuries. The spread has plunged 27.9 basis points over the last six days. This indicates that the Fed is having some success at reliquifying the market and that risk tolerance is increasing, which is a large positive.