Treasuries trading a little weaker early this morning while trade in stock index futures were slightly weaker prior to the 9:30 open. There are no scheduled economic reports today. At 9:30 the DJIA opened -9, NASDAQ -6, S&P -2; 10 yr note unchanged at 2.05% and 30 yr MBSs +4 bp.

After the strong increase in interest rates last week and the stock market running to new all-time highs on the DJIA (S&P still hasn't made it), this week is likely to see some minor improvement in rate markets while the stock market rests. At least that is what we expect, but until there is a significant decline in stock markets here and globally, interest rates have more propensity to increase than decline much.