5/27/10

Most rates are sharply higher today, as mortgage bonds have accelerated their decline from yesterday’s trade. The Dow is rallying through the roof, erasing much of the week’s losses. The decline comes mostly off of the news that China will hold their European debt for the time being. Jobless claims came in higher than expected, and GDP was weaker than expected. Both bond friendly indicators paint a still weakened economic picture for the US. Welcome back to life without the Fed. Volatility remains high, and doesn't show any signs of slowing.