Just off the wire, the FOMC sees significant risk to the downside within the economy and at the same time, bumping their forecast of unemployment, now going to 9.0% to 9.5% and GDP coming in at minus 2% for the second quarter.  Their comments tried to be on the positive side but the numbers they provided do not follow suit.  Interesting.


Earlier today, stocks took the lead and rallied out of the gate.  Bonds and mortgage backs opened in the opposite direction, off 2 to 3 /32’s at the time most pricing was struck.  Since that time fortunes have changed with the FOMC comments aiding in our recovery.  Currently, stocks are up 32 points on the Dow and mortgage backs are plus 3/32’s, while the 10 year note trades at 3.19%.  Maybe a price change for the better in the making!