Market Update

Mortgage Bonds are trading lower after some mixed news on the housing market. With high inventories and soft sales, builders may not be in a position to start actively building new homes. It will likely take more time before we see a clear stabilization in the Housing Sector. In other news, at 2 p.m. Eastern Time today, the Fed Minutes and forecasts will be released. It will be interesting to hear the Fed's outlook for future rate cuts--as well as their forecasts on GDP, PCE, and Unemployment. Although Bonds have started the day to the downside, I am still recommending to float, as the Bond is trading right near support at the 25-day Moving Average.