Rates moved higher yesterday afternoon, triggered by poor Treasury auction results, and have now risen by about 1/4% for the week. The sharp sell-off in mortgage-backed securities (MBS) reflects global concerns for bonds, in general, on the downgrading of Portuguese debt. Buyers are also demanding higher yields as the Fed ends their MBS purchase program next week. Fed Chairman Ben Bernanke speaks today about the Fed’s exit strategy from the MBS purchase program. Investors will be closely watching today’s Treasury auction of 7-year notes. In economic news, weekly Jobless Claims fell to 442,000, below the consensus forecast of 450,000.