Just a quick update as we see the market start to slip away. Currently, mortgage backs are off a smooth 9/32’s from yesterday’s close. Since we priced down 3/32’s, a price change for the worse is right around the corner. Stocks are flying, up over 300 on the big board and the 10 year note is off 27/32’s to yield 2.76%. Many cross currents are driving the market; positive change in mark to market for financial institutions, record high weekly claims and continuing claims numbers, and a surprise jump in factory orders just to name a few. If that were not enough, the big daddy of all economic data releases, the Employment Report for March will hit the tape at 7:30 am cst.
For now, buckle the chin strap and play a little defense.