Mortgage bond prices opened lower once again this morning as the data wasn't as bad as expected. The final revised Q4 GDP fell 6.3%, not as low as the expected 6.5% decline.
Weekly jobless claims were relatively as expected with an increase of 652,000.
There is another Treasury auction Friday. Debt supply concerns continue to pressure bonds as a whole as the most recent auction was rather poor. The UK had a failed auction this week and if that ever happened to the US all bets are off.
Expect more of the same with the Fed being the primary buyer of mortgage bonds. This doesn't mean we won't see rates go higher, as is evident over the past few days. But hopefully they will continue to shore up things and keep any major rate spikes from occurring.
Market is currently worse this morning by .125% of a discount point. This as of 9:50 AM.
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Thank you for your remarks. I will review your submission and post it accordingly. Dave.