MBS are up +5/32 (FNMA 30-yr 3.0 at 104.23), around 2/32 higher than yesterday at this time.

Weaker than expected labor market data has lifted MBS this morning. The ADP forecast for private sector job gains in April was just 119K, far below the consensus of 155K. This may cause investors to lower their expectations for Friday's Employment report. The Treasury announced that it will auction $72 billion in 3-yr, 10-yr, and 30-yr securities next week. The Dow is down 50 points. ISM Manufacturing and Construction Spending will be released at 10:00 et. The Fed announcement will come out around 2:00 et and could be a market mover. Investors are looking for the latest news on the Fed's view of the labor market and the bond buying program.