Given recent volatility, trading so far this morning has been relatively subdued as the markets await word from Washington. One player even went so far as to call conditions “eerily quiet.” As well as the Washington conflab, markets are waiting for the outcome of todays Lehman credit default swap auction. An auction will be held to determine the size of the payments buyers of default protection can claim after Lehman filed for bankruptcy with $618 bln in debt. Lehmans $128 bln of bonds were trading yesterday at an average of 13 cents on the dollar, indicating credit swap sellers may have to pay 87 cents on the dollar. Ouch!!!