Mortgage backed securities (MBS) prices are lower (rates higher) as the G-20 summit convened amid signs the U.S. may start to recover from recession and the global slowdown may be easing.

Stocks surged on rising optimism about the economy, cutting demand for the relative safety of fixed income assets. Investors may require higher hields to keep buying Treasuries as the administration borrows record amounts to try to snap the economic slump. European Central bank (ECB) lowered rates by 25bps, less than was expected.

Jobless Claims unexpectedly rose 12K to 669K, highest level since 1982, as companies kept cutting jobs to trim costs reinforcing concerns that the economy will continue to bleed jobs as companies reduce output. Total number of people on benefit rolls soared to 5.73 million.

Factory Orders rose for the first time in 7 months reflecting a rebound in demand signaling the worst of the manufacturing slump may have passed.