1/6/10

Most rate prices worsened today as mortgage bonds give back some of yesterday’s gains. Initially bonds were slightly positive but then fell back as Treasuries take it on the chin after ISM data reflected expansion and jobless claims fell to their lowest since March. Worse than expected payroll data failed to keep Bonds in positive territory as data continues to paint the picture “things are getting less bad”. Of course data often has nothing to do with market direction as we remain in a day trading environment of profit taking while the Fed continues to prop things up. The market continues its sleepy holiday funk as investors wait for us originators to awaken with some supply.