The rest of the news:

1.  University of Michigan Consumer Sentiment came in at 59.8, still at a 28 year low.  Consumers expectations of future conditions including inflation are also at a 28 year low.

2. Chicago PMI came in at 49.1, slightly higher than expected, but below the moving average.

3. NAPM came in lower than expectations of 47.0 at 46.0.  This is also down from 48.0 in April.

 All of this data is either neutral or positive for the bonds market.  As such, MBS are holding their gains from earlier this morning, though there is some slight selling currently.  If you already have rates for the morning, and you saw a quarter improvement in price over yesterday, locking is not a bad idea.  But we will likely end the day positively.  Floating is recommended if you can afford the slight risk.

 Treasuries are tracking decently with MBS and can serve as a good preliminary gauge.  Check back here for updates as well.