Mortgage backed securities (MBS) prices are little changed in quiet trading on "coupon rollover day". The monthly rollover took place overnight for FNMA securities, the current coupon switched from March to the April contract.

April MBS prices reflected a drop of about 31bps from March to compensate for lost interest income for one month.

Fixed income assets recouped intial losses after China said exports plunged last month, adding evidence the global economic slump is deepening.

The Mortgage Bankers Association weekly purchase index rose 7% & refinances increased 13% tracking the recent drop from 5.14% to 4.96% for 30yr fixed mortgages. No economic data will be released today. Treasury auction of 10yr notes at 10am pt.