Jobs report arrived this morning showing there were 539,000 jobs lost in April versus expections of 610,000 lost and this was the smallest job loss since October. Umemployed Rate moved to a 26 year high of 6.9%.

Mortgage Bonds are all over the place and have fallen beneath the 50 and 100 day moving averages. Stocks are treading higher today.

The NY Fed has purchased to date 450 B of the 1.25 T comitted to purchase Mortgage Backed Secureites. The Fed has not purchased any of the 3% coupoin, in which heavy buying would be needed to bring home loan rates near 4%. Additionally, the total amount of 3.5% coupons purchased has only been $392M, only .08% of the total, In other words, 99.2% of the Fed's spending is not going towards helping rates move towards 4%.