Volatile trade in both stocks and MBS has markets moving once again. Stocks were off over 100 points on higher than expected ADP jobs estimates and a sour Chicago Purchasing Managers report. Mortgage backs opened to the down side, off 2/32’s for much of the morning. That has all changed as stocks have now gone positive (up 16 points on the Dow) while mortgage backs are feeling the pressure, down 5/32’s. Spreads between MBS and Treasuries have also widen, akin to throwing salt in the wound. Best bet is to be watchful of the market into the Friday Employment Report.