Stocks are adding to their move higher this morning as investors are apt to take a bit more risk. The ECB has continued to purchase Spanish and Italian bonds as indicated by their lowering yield. This is also adding pressure to mortgage bonds which have moved below their 25 day moving average, something that has not occurred since the March – April time frame. While there should still be pockets of opportunity in the future for mortgage bonds to move back due to all the uncertainty in the financial world, interest rates sat at their lows for virtually the whole month of July. For those who locked during this time-frame, congratulations…. You made a wise decision…. We will maintain a locking bias as bonds contends with auctions this week.