Mortgage rates near unchanged to slightly worse

as mortgage bonds fail to hold onto later afternoon gains from Monday. Bonds are under pressure as traders set up for today’s buyback and auction--also seeing some money manager selling. Adding more pressure is Fed President Plosser’s comments reiterating his doubts on QE2 asset purchases. In news released today, small business optimism fell, job openings fell and wholesale inventories fell. These reports had little effect on the markets as the stock indices are all in positive territory halting 3 days of losses. Today’s 3-year Treasury auction results will be out around 10am.