Waiting Game
2/2/10 Mortgage Backed Securities are minus 6bp this morning. Pending home sales rose 1% in December and was in line with expectations. UPS doubles their profit in the last quarter. Next week's auction schedule will be released on Wednesday. We have not seen any major moves in either direction this week. We believe the markets will be focusing on the job reports being released Friday morning. We think the markets will trade sideways into those reports.

We continue...