Locking Bias

Markets are starting this short trading week with stocks moving higher, with the Dow trading above 14,000 and all other indexes positive as well.  Wednesday and Thursday are heavy on economic reports, with PPI and FOMC minutes released tomorrow and CPI, Initial Jobless Claims and the Philly Fed Index on Thursday.  Depending on the tone of these reports, stock indexes could be propelled to their all-time highs.  mortgage bonds are trading in a very tight range once again, but holding above a level of support established over the last few days.  We will suggest a locking bias on short term transactions.