Daily Market Update 6/22/09

Rates moved lower Monday as the World Bank raised its forecast for global economic contraction for 2009 to 2.9% from 1.7%. Stocks fell sharply. This may be a volatile week for mortgage-backed securities (MBS) with large Treasury auctions each of the next three days and the Fed meeting Wednesday. Durable Goods Orders, an important indicator of overall economic activity, will be released Wednesday. The Core PCE index, the Fed's preferred measure of inflation, will come out on Friday. No economic data will be released today.