PPI was released this morning with no real surprises for the market. There was virtually no impact on trading. Stocks were up slightly at the start, but the downward momentum of the week is capping any attempts to move higher. Bonds moved lower for the week as well, and look to be in the same predicament as stocks… That being, no catalyst for direction until next Wednesday’s Fed meeting concludes with their monetary policy announcement. Next week has a full economic calendar as well. mortgage bonds continue to sit at the bottom of the trading range. We will suggest a cautious floating bias as long as this level holds. However, be mindful that we are still in a downward trading pattern. History warns that we will likely reach the bottom of the current trading channel before seeing any significant improvement in the bond market.