Weekly jobs report fell 18 thousand, the lowest in five years.  The stock market reacted positively, which resulted in a slight decline treasuries and the MBSs taking the largest hit.

The ECB cut its base rate to 0.5%, the lowest on record, resulting in an improvement in European stock markets.

The remainder of the day is expected to be quiet, with all forecasters focusing on tomorrows April unemployment report, which is notorious for its volatility.  Even a stronger than expected report is not likely to change the long term outlook on the bond and mortgage markets.

- Michael Corboy