This morning's initial jobless claims came out slightly better than expected 365k v 370k. The stock futures are taking the news as a positive and money will move out of bonds and into stocks. The DOW lost a decent amount over the past 2 days so expect a good day for stocks early on. In other news oil prices hit another all-time high at over $135 per barrell this morning. Bonds don't like the inflation in that.
Mortgage Bonds are down about 40 bps early this morning and are sitting on the key level of support. The damage seems to be done so I would be carefully FLOATING here ahead of the stock market openings.
Update 1:45pm - we are in LOCKING mode.