This morning's release of weekly Jobless Claims data turned out to be a relative non-event as the 351k claims perfectly matched last week's numbers (revised from 348k to 351k).  Because today's report covers the same time period as the "survey week" for the next Non-Farm Payrolls report, it stood a chance to be more important than usual, but that importance seems to have been sapped by the flat results and slight upward revision of the previous week.

Beyond that, the only other economic data this morning was FHFA's House Price Index which showed a 0.1% decline in home prices in the fourth quarter of 2011.  The more significant market movers this morning have been of the unscheduled variety.  After Jobless Claims failed to prompt a break of the important 2.045 technical level, bond markets improved steadily in the 9 O'clock hour, helped along by a less-hawkish-than Dallas Fed President Richard Fisher on CNBC as well as a newswire stating that Germany's upcoming vote on the Greek bailout packed will be tied to the IMF's involvement.

This all helped Treasuries get back under their long term trend channel support line in 10yr yields and MBS to approach yesterday's highs.  Fannie 3.5's in fact broke above yesterday's highs but only briefly, and have been more inclined to treat the 103-13 level as overhead resistance today.  10yr notes similarly shied away from exploring better levels today, causing some concern about a more pronounced back up ahead of the 1pm 7yr Note Auction