5/18/10

Most rate prices improved a bit from yesterday’s re-price for the worse as mortgage bonds regain some losses. MBS, although lagging, are benefitting despite an initially improved market for stocks as investors attempt to turn thoughts away from the European debt situation. However much of those gains are evaporating as bonds firm up levels and the market shrugs off the higher than expected core Producer Price Index and better than expected Housing Starts data released today.