Good Tuesday AM,

Bonds are down this morning, equities basically flat, and crypto is up. The ten-year is doing better than Mortgage Bonds and if you had to decide which you would want to outperform the other, this is the way you want it. The Mortgage Backed Security market is far smaller than the Treasury markets so Mortgage Backed Securities often take their direction from Treasuries. The news today was more friendly than not for bonds, with ISM manufacturing and Construction spending both down from last month. Today’s action is more about staying range bound most of this week as the market waits to see the Non-farm payroll numbers on Friday. I would be defensive here.

Please remain safe and healthy, make today great.