Good Tuesday AM,

Treasuries are doing well and outperforming mortgages today as they should (it’s been the reverse for two weeks and Treasuries need to catch up). Mortgage bonds are flat to leaking lower but this seems to be more technical as we continue to push up against the line of resistance and not break through. The challenge is of course, if we don’t break through, we will sell off to support which is about 20 basis points lower than where we are right now. The stock market is selling off at the moment. Tech stocks are taking a beating as markets see the supply chain disruptions as temporary and stocks have run too high. I am not surprised by the selloff in stocks. Not much else going on, but keep in mind that with the jobs report on Friday volatility will increase daily until then.

Please remain safe and healthy, make today great.