Just an appetizer here before the rest of the data hits in 30 minutes...

Initial Jobless Claims dropped 5k to 381k (still very high).

However, continuing claims moderated to a 3.060 million level, a 76k drop, and although over 3 million is still high, this is the lowest level in 6 weeks and the biggest one week drop since February.  This isn't bond friendly news, but it's not a lethal shot.

Stock futures have risen a bit on the news and bonds have sold, however, treasuries are selling to a much greater extent than MBS.  The 6.0%, 5.5%, and 5.0% coupon are all three down only a scant 2/32nds.  That's some great resiliency in the face of stronger than expected data.

Call up your shamans and witch doctors to start their dances for weak LEI and Philly Fed at 7AM and it could be another good day for MBS.  Those reports will likely set the tone for the rest of the day.