Good Thursday AM,

CPI numbers out his AM along with unemployment claims and I felt they were pretty tame.

The initial market reaction had mortgage bonds up nicely with the ten-year note down to 3.95%. It just couldn’t hold to that action, which took us below the Fibonacci line of 3.97 up to the 50 day moving average for bond prices. Technical stuff for sure, and the bottom line is that currently the 10yr sold off back to 4.02 and mortgage bonds mostly unchanged. For the moment, I think we’re going to stay in this range for a bit. It might be the market’s waiting for tomorrow when we get PPI.

As always, without a reason to float, locking is a better choice.

Please remain safe and stay healthy, make today great!