Good Tuesday AM,

Russia has a vaccine, did you hear? Untested but I’m sure it works. Anyone want to try it first? Stocks going crazy over the news, so this has to be true. A case of buy the rumor and sell the news… although that’s been our world for the last few months. Only good news, folks. Typically bonds have held up well. That is not the case today. I think it is part of the news about a vaccine, but more that the recent rally in bonds needs to take a break. Bonds for lack of a better way to explain, are tired. The 10-yr yield gapped up at the open above support at .58 to .66 (a huge jump and mortgage bonds are fading along with the 10-yr). Mortgage bonds are currently down 23bps. I am not sure the bleeding will stop here. We also had  PPI, which came in well above target. Dow +300. It is dicey in here. Even after the rough start, it is better to lock now.

Please remain safe and stay healthy, make today great!