2/11/10

Most rates are level to slightly better than yesterday’s re-price for the worse as mortgage bonds attempt to hold onto some reclaimed losses from late in the session on Wednesday. Treasuries are weakening ahead of today’s 30-year Auction. If Tuesday’s and Wednesday’s auctions are any indication, it doesn’t look good. However MBS are tightening with Treasuries at the moment helping keep rate sheet prices intact—for now. Stocks initially negative have done an about face and are now trading higher, adding pressure to bonds. Jobless claims came in better than expected but had little effect on the market. Tomorrow brings retail sales and consumer confidence. Today’s auction results due out around 10am.