Locking Stance: CAUTOUSLY FLOATING Mortgage Bonds: +31bp
Mortgage bonds are having a good day today, but they are off their highs, so extra caution is needed if you are going to float.
Initial Jobless Claims were over 400K and Existing Home Sales were at a 10-year low. Good news for bonds as it takes eyes off inflation and refocuses on a poor economy.
There are some concerns about prices as they have pulled back below some resistance. Depending on the size of the correction, we may also have seen its full movement. I will keep an eye and report of any changes in my stance and update you on what is happening.
