With the big rise in the stock market, interest rates are under pressure leading to slightly higher rates.MBS are down -7/32 (FNMA 30-yr 3.0 at 102.30), around 7/32 lower than yesterday at this time. An improving outlook for the labor market has hurt MBS yesterday and today, ahead of tomorrow's big Employment report. Weekly Jobless Claims dropped to 340K, below the consensus of 350K. The January Trade Deficit increased to $44.4B, which was a little higher than expected. Fourth quarter Productivity was revised slightly to -1.9%. As expected, the European Central Bank (ECB) made no change in rates. The ECB lowered its forecast for euro zone economic growth in 2013. The Dow is up 40 points. No more economic data will be released today.