US Treasury notes are improved today.  Mortgage-backed Securities (MBS) issued by Fannie Mae and Freddie Mac are up very slightly.  The recent trend of higher volatility for Treasury notes compared to the MBS has continued.  Investors are cautiously awaiting the July Non Farm Payroll Report tomorrow.  Analysts are expecting an 87,000 reduction in total with the private sector adding 82,500 jobs and the government sector dropping by 169,500.  In today's economic news, Initial Jobless Claims for the week ended 7/31 came in at 479,000 which was higher than the 455,000 analysts had been expecting.  This was 19,000 higher than the prior week's revised 460,000 claims count.   Continuing Jobless Claims for the week ended 7/24 came in at 4.537 million which was almost right at analyst targets for 4.530 million.  This was a drop of 34,000 compared to the prior week's revised 4.571 million figure.