Mortgage Market Commentary
Mortgage backed securities prices (MBS) fell, then rebounded (rates rose) and stocks advanced after release of the Employment report showed the economy lost 651k jobs in February, December and January figures were revised lower and the Unemployment Rate jumped to 8.1%; highest in 25 years. FNMA 4.5% coupon 101.19bps, 1bps. Traders return focus to the continuous battle between weak economic data that should push rates lower and lingering supply concerns pulling rates higher. The economy may need additional federal measures to help stop the worst recession since WWII. The flight to quality and risk reduction trade is overwhelmed by the announcement of further Treasury borrowings.
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