Mortgage Backed Securities (MBS) prices are higher(rates lower)this morning as traders focus more on accelerating job losses than the flood of new supply overwhelming demand.

Intial jobless claims surged to 626k, +35k & 4-week moving average +39k to 582k. U.S. Productivity rose 3.2% twice more than expected and Unit Labor Costs gained only 1.8%, both favorable to MBS.

The Fed releases details of recent MBS purchases 1pm pt today.