Daily Market Update 5/29/12

Rates were little changed Monday despite a stock market rally.  In economic news, the S&P Case-Shiller home price index declined 2.6% in the first quarter from one year ago, reaching its lowest level since 2002.  Consumer Confidence fell unexpectedly to 64.9.  A reading of 71.0 had been forecast.  The mortgage-backed securities market may be volatile this week as we approach Friday's key data, including the Employment Report, Core PCE price index, and ISM manufacturing index.  No other data will be released today.