Thursday 10/30 ... Data and the Open

• 479k Jobless Claims from a revised 479k. No net change...
• GDP down .3% not as bad as expectations of -.6%
• PCE Price Index up 2.9% YoY

Significant tightening versus tsy's

But the better than expected GDP plus the higher than expected PCE have rates under a bit of pressure in MBS.

5.5's are down 4 ticks on the day in active trading at 97-16, which is below our magical floor from yesterday, but only just.

Libor spreads are lower again which should provide a modicum of support for MBS funding. That skittish portion of you with overnight price protection might be looking at losing some ground this morning, but the morning may be too young to tell if this turns into any direction momentum.

Stay tuned..