4/20/10

Most rate prices worsened today as mortgage bonds continue to trade lower alongside Treasuries. MBS have been bound and tied to a range that seems more ready to fade than rally. Stock markets are up on positive earning reports--even an SEC fraud charge can’t deter Goldman Sachs’ stock from gaining after better than expected earnings came out today (much of those earnings courtesy of the Fed’s rate policy and ultimately us taxpayers—lets’ hear it for bonuses all around!) No major economic releases are scheduled today except ABC consumer confidence due at 2pm but don’t expect any major shockwaves from the data. We don’t get any big news until Thursday in the form of producer price index, jobless claims and home sales data. Bonds remain under some pressure as continued thin trading conditions are not moving in our favor.