Daily Mortgage Stance

    Mortgage Bonds continue to trade in a narrow range just above support at the 200-day Moving Average and are modestly higher in quiet trading.

    Bond traders are starting to look ahead to next week’s risk events that include the FOMC policy statement being released on Wednesday, $96B in Note offerings from the Treasury and a boatload of economic data.

    Bond prices are in a “wait-and-see pattern” and with Friday not historically the best day of the week for Mortgage Bonds, we are recommending to lock any short-term transactions, as measured in a few days to two weeks. Longer-term, floating is prudent.

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