Mortgage bonds are near unchanged holding rates relatively steady today in quiet trading. Preliminary Q2 Productivity fell 0.9%, lower than the expected 0.2% increase. The initial reaction has been muted. The DOW closed up 45 points yesterday. We have a 3Y Treasury auction and Fed results this afternoon. Right now the talk is heavily favoring a Fed move towards quantitative easing through the additional purchasing of US Treasuries and mortgage bonds. We shall see what the Fed says about that this afternoon
Carlos Figueira - Keypoint Mortgage 