Cautiously Floating Mortgage Bonds slightly positive

Cautiously Floating Mortgage Bonds slightly positive

Markets opened relatively mild this morning as there are no economic reports on the calendar today.  The FOMC starts their 2 day meeting tomorrow, with the conclusion on Wednesday.  While this announcement typically addresses any shift in monetary policy, investors will be listening for comments regarding “Operation Twist”, which is scheduled to end this year.  Could it be the announcement of QE4?  President Obama and John Boehner met face to face on Sunday afternoon and a statement representing both sides was released shortly after.  There were no details, but the message stated that “the lines of communication remained open.”  mortgage bonds are slightly positive for now, but have treasury auctions to contend with this week.  We will start the week with a cautious floating bias.