Good Tuesday AM,

Bonds are down slightly this morning… the ten-year that is. MBS is up a bit and getting closer to a key resistance level. I expect things to continue to stay flat into Friday’s news. Two big things happening on Friday, those being the release of the PCE numbers and perhaps news of what the FED has to say during the Jackson Hole meeting. Interesting thing about Friday’s Fed Symposium… it is now virtual due to Covid. It seems it would likely be difficult for Mr. Powell to discuss tapering when the virus has caused the Fed to change its plans (and yes, I see inflation as transitory). Likely ok floating for now, just know that there is likely not much benefit other than being able to get a shorter lock at the end of the week. I am not sure I would be floating on Friday though. The House is now back in session and so the back room negotiations on the budget continue. Turns my stomach, but not nearly as much as the mess in Afghanistan, but that is for another commentary. Continuing to pray for everyone’s safety.  

Please remain safe and healthy, make today great!