Mortgage backed securities (MBS) prices spiked higher (rates lower) at the opening, continuing yesterday's late afternoon rally, on speculation the central bank is prepared to purchase U.S. debt in an effort to cut long term interest rates and the deepening recession will stoke investor appetite for massive debt offering this week.

Potentially a volatile day, as Treasury unveils TARP revisions, Bernanke testifies to Congress and 3yr note auction results all or any could bring dramatic swings in MBS prices.