STAY Tuned for possible LOWER rates
MBS are up +2/32 (FNMA 30-yr 3.5 at 103.11), around 1/32 lower than yesterday at this time.
Weaker than expected inflation data has helped MBS a little this morning. July PPI fell 0.1% from June, below the consensus for an increase of 0.1%, and it was 1.9% higher than one year ago. Core PPI, which excludes food and energy, also decreased 0.1%, below the consensus for an increase of 0.2%. Core PPI was 1.8% higher than one year ago. Weekly Jobless Claims came in close to expectations. The Dow is down 100 points. No more economic data will be released today. The results from the 10-yr Treasury auction will come out around 1:00 et.