The government shutdown extends to a fourth day with no end in the near future. Mortgage Bonds are trading near key technical levels and have started the day to the downside.
The government shutdown will soon take a backseat to the looming October 17 deadline for the debt ceiling. The U.S. Treasury said yesterday that a default would be catastrophic to the U.S. economy and could eventually lead to a recession.
With Mortgage Bond prices stalling at current levels, we will continue to recommend a locking bias. Have a great weekend!