4/15/10

Most rate prices are near unchanged with yesterday’s re-price for the worse as mortgage bonds firm in their closing levels after yesterday’s mid-day selloff. After earlier negative movement off of significantly better than expected Manufacturing data, followed by worse than expected jobless claim and industrial production, both MBS and Treasuries are trading positive at the moment as narrow range volatility continues and buyers emerge after the dips (prices not traders!). The Philly Fed business outlook survey came right in at expectations but could be viewed as disappointing in light of the strong NY Fed manufacturing data. Stocks have reversed their initial negative movement as both the Dow and S&P trade higher.