MBS Bonds Retain Most of Yesterday's Gains

In the wake of yesterday's Fed funds rate hike and the huge gains for MBS, the bonds retained 31 basis points of the advance as the market closed today.  Stock futures began the day on a positive note as traders assessed the possible stock deal involving Disney and Twenty First Century Fox. Later in the session, however, they sold off in fear of what the effects of the tax cut bill might be.  Initial jobless claims fell to 225,000 versus the 239,000 expected.  The Dow lost 76 points on the day.