Locking Bias

There were a few economic reports today starting with the Empire State Index showing an improvement in manufacturing.  This was followed by Consumer Sentiment, which beat expectations as well.  Apparently, vacationers on the stranded Carnival Cruise ship were not part of the survey…  Stocks are positive, but ever so slightly with the Dow just under 14,000 and the other indexes up slightly as well.  mortgage bonds were not able to follow through with improvements after a strong auction and bond market gains yesterday.  That keeps bonds clearly within the down trend they have been in, so interest rates are continuing to be pressured higher.  It’s a holiday weekend with all the markets closed on Monday in observance of President’s Day.  We will suggest a locking bias on short term transactions.