MBS OPEN: New Quarter Begins, ADP Worse Than Expected

By: Matthew Graham

Yesterday's Recap

- Way down, then way up, then way down again ("way" as in just over 10 ticks, not as in a major sell-off)

- Stocks lost as well

- Investor confidence higher, consumer confidence lower

- Case Shiller out with "least bad" readings in recent memory, prompts first wave of selling

- last day of Q2

The AM So Far...

- Tsys and MBS opened a bit lower

- whipping around in early trade following ADP

- ADP showing 473k loss in private payrolls (keep in mind that value of ADP as a correlative indicator of Jobless Claims is always suspect, but markets react regardless)

- stock futures paring gains

- bottom in for MBS just below yesterday's lows?  Top in for 10yr Just below 3.6?

- Bloomberg points out bank stocks' fall of 23% Since May suggest selling on horizon in S & P full article...

- Fed's Yellen says rates could be near zero for years. Bets in futures markets on a rate increase as soon as late 2009 are "jumping the gun."  In a statement responding to the news, an anonymous source was quoted as saying: "Duh!"

- for MBS quotes updated every 30 min or less, don't forget:

- Can we get some Q309 tightening please?

THE RATES PAGE 

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