Mortgage bonds prices are weaker this morning pressuring rates higher. The biggest news so far is the $146 billion Greek bailout. This was the largest ever bailout and the first for the members of the 16 nation Eurogroup. This aid was infused to help prevent a default. If we see stabilization, or perceived stabilization, with these moves we will likely see a reverse of the earlier flight to quality buying tied to the Greek instability. We have personal income, outlays, and ISM Index data this morning. Personal income rose 0.3%, spending rose 0.6%, and the core PCE price index, an inflation indicator, rose 0.1%, all as expected. ISM will be released at 10am ET.
Carlos Figueira - Keypoint Mortgage 