Market Update

Mortgage Bonds are modestly higher and continue to hover near the 200-day Moving Average.
This morning, inflation watchers breathed a sigh of relief as the core rate of consumer inflation remained stable and matched expectations. In other news, however, the numbers of Housing Starts and Building Permits for September were reported weaker than expected and are at a 14-year low. As long as Bonds remain above multiple layers of support, I am continuing to recommend floating.