This morning US Treasury notes opened stronger on a weaker than expected March ADP private sector payroll report.  ADP reported 23,000 lost jobs.  The market was expecting a 40,000 increase.  Also, the March Chicago Purchasing Manager's Index (PMI) came in at 58.8 vs market expectations for 61.0.  February's Factory Orders came in up .6% vs market expectations for a .5% increase. Fannie Mae and Freddie Mac Mortgage-Backed Securities (MBS) are essentially unchanged.  We could now begin to see the spread between the yield on US Treasury's and the MBS widen given that the Fed is no longer purchasing the MBS.