Mortgage backed securities (MBS) prices have turned higher (rates lower).

Today's economic data showed February Retail Sales fell less than forecast and January's gain was revised higher indicating the biggest part of the economy may be starting to stabilize.

Jobless claims rose last week by 9k to 654k and total collecting benefits is a record 5,317,000. Treasury auction of 30yr bonds at 10am pt. Demand may be tempered on concern rising supply will deter investors as the U.S. raises record sums to snap the recession.

Foreclosures climbed 30% in February as the worsening economy thwarted efforts by the government and lenders to prevent homeowners from losing property. Lenders own as many as 700,000 foreclosed homes they have yet to offer for sale. The banks are waiting to see how government plans develop before selling the properties. Top ten cities with highest foreclosures: Las Vegas NV, Cape Coral-Fort Myers FL, Stockton Ca, Modesto Ca, Merced Ca, Riverside-San Bernadino Ca, Bakersfield Ca, Reno-Sparks NV, Phoenix Az and Vallejo-Fairfield Ca.