Treasuries and mortgages opened soft this morning; mortgage prices at 9:00 edt were down .250 bp, the 10 yr note -13/32 at 3.58% +5 BP.

The weekly mortgage applicatins report from MBA showed a whopping 18.9% decline overall; applications for purchases were down 4.5% while apps for re-financings fell 30%. Mortgage rates last week were down 10 BPs to 5.34% according to MBA.

The ADP June jobs report came with a decline in jobs in June of 473K, much lower than expected. May job losses were revised from -532K to -485K. ADP does not take into account government jobs that usually increase. Tomorrow the offical BLS June employment will be reported at 8:30 edt.

At 10:00 the ISM manufacturing index, expected at 45.0 frm 42.8 in May, about in line at 44.8. New orders component at 49.2 frm 51.1 in May, prices pd at 50.0 frm 43.5 and employment at 40.7 frm 34.3. The overall view is a good report; any reading under 50 is contraction but as the various indexes improve they are moving toward that pivotal 50 level.

More at 10:00; May construction spending, expected down 0.5%, was down 0.9%.

Finally at 10:00 May pending home sales, estimates were for an increase of 1.1%, sales were up just 0.1%. Pending sales are contracts signed but not yet closed.

At 10:10 the 10 yr note -10/32; mtg prices -4/32 on the day. The DJIA +90.