Market Commentary for 9/27/12 -  Mortgage bonds are weaker this morning after a better than expected initial claims report for last week.  Initial claims dropped to 359,000, the best number we have seen in a while.  In other important news GDP was revised all the way down to 1.3%, and durable goods sank by over 13%... the worst drop in over 3 years.  Overall the economic news is concerning, to say the least  but GDP and durable goods look backwards, while initial claims is a more forward looking indicator.  This likely explains the market’s reaction, at least initially so.