The bond and mortgage markets opened unchanged but with little to drive it after the strong moves yesterday at 9:00 the 10 yr -4/32 at 3.50% and mortgage prices -3/32. The stock market trade at 9:00 had the DJIA futures down 61 points. At 9:30 the DJIA opened -55, 10 yr note -1/32 and mortgage prices -1/32.

This week so far has no economic measurements to think about; this morning the weekly MBA mortgage applications data. The index was +2.8% overall with purchase applications +1.3% and re-finance apps +4.0%. Mortgage rates increased last week according to the report; to 5.31% for 30s frm 5.05% the previous week; 15 yr mtgs 4.80% frm 4.59%. Usually MBA includes a 1% origination fee paid on the rates they report. No real reaction to the report that came at 7:00 AM edt.

Nothing left today on the data board. Earnings reports continue to dribble out for Q2; Morgan Stanley's data this morning was worse than expected. At 10:00 Ben Bernanke will return to Congress for the second day of his semi-annual required testimony on monetary policy and the economy, today at the Senate. Yesterday Gentle Ben outlined the Fed;s plans to cut off inflation at the knees when the economy actually starts to grow. Markets wanted to hear how the Fed plans to retreat from all of the stimulus it has affected in the quantative easing over the last two years. Bernanke's plans were welcomed and interest rates declined in a strong move. He also said the Feed sees little economic recovery for at least a year and that the Fed had no intentions of any tightening for quite awhile.