28 Feb Locking Bias
2018’s 4th quarter GDP revision came in at 2.6% versus the 2.3% estimate, and the Chicago PMI beat estimates as well at 64.7 versus 57.0 estimate. Investors also have their eye on President Trumps attempt to strike a deal with North Korea, but that does not appear to be happening at this time.
Tomorrow’s PCE could be a catalyst to move the markets if a rise in inflation were to surprise us by increasing, and next week brings employment numbers. Stocks have stayed relatively flat, but mortgage bonds are being pressured to move to the low side of their channel. The last 2 days have been in the red for mortgage bonds, so we will maintain our locking bias.