5/13/10

Mortgage bonds continue to tighten with Treasuries from their wide of a week ago ahead of today’s 30yr auction. Meanwhile in domestic news released today, import prices rose largely on seasonal oil prices, netting a positive read on inflation and jobless claims remained stubbornly above expectations. The stock markets have traded in negative territory as investors are concerned after the jobless claim data was released and financials are pressured as US prosecutors and the SEC probe into past mortgage deals and whether banks misled investors with fraudulent ratings information. Folks, this will be one to watch…