Mortgage rates worsened today

as mortgage bonds continue their losses from Tuesday, following Treasuries deeper into negative territory ahead of today’s 10-year auction. News of Japan’s offer to buy Euro bonds yesterday was not bond friendly, helping to stem the flight to quality. Trading conditions remain light and origination is a mere blip on the screens of bond traders. Stocks are back on a run as all indices are making gains, the Dow up almost 100-points in part due to speculation European officials are stepping up efforts to solve the debt crisis and U.S. banks will boost dividends.. In news released today, mortgage applications were up last week and Import prices were up largely thanks to higher fuel costs (notice the prices at the pump lately?). Later today the Fed Beige Book of economic activity will be released. Yesterday’s 3-year auction was average but bonds still sold off. Today’s 10-year results due out around 10am.