Locking Bias

Markets are starting another day in a relatively tight range as investors appear to be focused on this Friday’s speech from Ben Bernanke.  The 2^nd revision of GDP for the 2^nd quarter of the year came in at 1.7%, which still low, but was above the original estimate of 1.5%.  mortgage bonds are down today as anticipated results of the $35 billion in 5 year notes acceptance are weighing on investors.  Interest rates have held steady for the last 5-6 days and have been unable to break out.  The chart looks like they could easily pressure rates higher again, so unless you are prepared to ride out some volatility, we will advise a locking bias.