Data Weak
3/31/10 Mortgage Backed Securities are plus 3bp this morning. ADP employment numbers and the Chicago Purchasing Managers Index are both lower than expected. Bond markets improved after the news. With the Fed exiting the MBS purchase program today there was no huge rally. Fed officials have started talking about the sale of their 1.25 trillion dollars of MBS. It will not happen over night, but it will start happening and that will make rates go up over time. The Fed had used its...