Locking bias

Markets opened up mixed as Apple’s disappointing earnings are dragging down the Nasdaq, but Catapillar’s positive report is helping the Dow.  Investors are also considering the news from Europe which indicated that the ECB is not so quick to let Greece fall away from the Euro, and may be more than willing to financially support Spain’s situation.  mortgage bonds have topped out the last few days and appear to be in an overbought state, so a pullback from here would not be a surprise.  The bond market also has a few more auctions this week to contend with as well. If the pullback occurs, interest rates at their current all-time lows could move a notch higher.  We will continue to advise a locking bias on short term transactions.