Locking Bias

So much for “sell in May and go away”.  The Jobs Report gave investors reason to push the Dow over 15,000 this morning.  Not only did the number beat expectations, but February and March were revised higher by 114,000. In addition, the Unemployment Rate dropped to 7.5%.  The reality of that figure is still due to the lowest Labor Force Participation Rate in 35 years.  mortgage bonds have been selling off on the news and are trying to hold above the 200 DMA. This will push rates up off of the lows we have seen over the last few weeks.   We will change from a locking bias to floating on new transactions as long as bond prices stay above the 200 DMA.