Mortgage Backed Securities (MBS) traders will stay focused primarily on employment and supply this week, looking for evidence that the recession may be deepening while taking stock of the expected record amount of debt required to finance what may be the largest round of government spending to date.

Today we'll receive Personal Income/Spending report as well as the Construction Spending & ISM manufacturing index. Pending Home Sales will be issued tomorrow.

The real fun will begin on Wednesday, when the Challenger & ADP job reports give us current layoff numbers. Nothing impacts the mortgage and financial markets quite like employment statistics.  

Jobless claims data and the Productivity and Factory Orders report come out on Thursday, with the Employment report for January rounding out the week on Friday. 

Oh... and the Fed's weekly report on MBS purchases will be issued at 4 PM ET Thursday. 

Hold on to your hats, folks!  We're in for an active week!