Good Morning on this best day of the week, Wednesday from your Hometown Lender,

Yesterday was a mess for the markets.

Today we are clawing about 40% of that back. It feels like a win for the moment. Lots of speculation now about the trajectory of inflation and then the trajectory of Fed cuts. The highlight of today’s calendar is Fedspeak, with the presidents of various Federal Reserve districts speaking, though things kicked off with mortgage applications decreasing 2.3 percent from one week earlier, according to data from the MBA’s Weekly Mortgage Applications Survey for the week ending February 9.

The remainder of the economic calendar consists of Fed speak:

Chicago President Goolsbee who was already out with some dovish-like comments about this CPI data being one report and not consequential, and Atlanta President Bostic who will likely be more hawkish. Currently, we are holding with the 10-yr back to 4.25% and mortgage bonds +26bps. Tomorrow is another big day with unemployment claims, retail sales, Industrial production, Capacity Utilization and the Builder index.

This Friday, the data is even more important with PPI and Consumer Sentiment.

I would like to say we know where the top now is from yesterday’s sell off and intuitively, believe that but I do not know how the chips will fall. I do know that rates will improve over time.

Please remain safe and healthy, make today great!