All Gains yesterday Lost today...

Mortgage bond prices remain higher this morning erasing the losses from yesterday afternoon and helping rates improve. MBS prices struggled late yesterday as stocks surged higher. The DOW closed up 126 points. This morning that looks to all reverse as euro zone debt fears had stock futures considerably lower. The DOW was down 139 points at PRICING this morning. Italy and Spain saw bond yields rise as the euro debt concerns continue. The European Commission's economic sentiment index slipped by 2.3 points, weaker than expected. Almost every country in the euro zone saw a decline which is a big concern considering Germany usually is the bright spot in the region. Flight to quality buying of US debt instruments resulted from the release. This is good news for US mortgage interest rates in the short term. However, expect more volatility as things play out. There is no data today but we have ADP employment, weekly jobless claims, and the employment report the latter portion of the week.