This week MBS markets will open near very key support levels after the May employment report came in inconclusive in the QE debate.  With unemployment increasing to 7.6%, the Fed has little reason to change its direction now.

The 10 yr. note continues to increase.  The volatility index rose to 84.8 on June 6th, the highest since June of 2012. 

The markets have become completely consumed over when the Fed will begin to taper its QEs.  Many see that any easement at this time, would be unproductive based on the weak employment data and slow economic growth and a waste of money and a disruption of normal market forces; which requires the markets to adjust to reality vs. the manipulated market effects caused by central bank stimulus.

- Michael Corboy