Daily Update

Markets opened with all the indexes down by over 1%… The reason? Political deadlock.  Washington continues to take it to the last hour with Fiscal Cliff negotiations, or breakdown, depending on how you look at it.  Economic reports were all inline or better than expectations, with the exception of Consumer Sentiment being slightly lower than expected.  mortgage bonds are benefiting from the uncertainty and have bounced off of a support level nicely.  We will continue with a floating bias.