More of the same from the Fed

Mortgage bonds are flat on the day so far, as investors continue to digest statements made by Fed President Janet Yellen.  Really, there was no news of great significance, outside of her saying that the Fed may have misjudged the strength of the labor market and the factors that are currently influencing inflation levels.  Other than that, her statements continue to support prior comments that he Fed will hope to hike at least one more time in 2017 and 3 times in 2018.  This is more of the same that seems to be repeated on a daily basis. 

Republicans seem to be once again starting over on a revised plan to repeal and replace Obamacare.  If nothing else, their commitment to this goal has been steadfast.  The last attempt failed to gain the votes needed.  This was even after sweetening the pot for states in which the plan was not being supported.  The residence of such states would have had exemptions and benefits that would not have been offered to citizens outside of such areas.  Although this clearly seems to be an unfair tactic, it is just standard operating practice for government officials.  It remains to be seen if the Republicans will ultimately be victorious.  If not, it won’t be due to a lack of trying. 

Bonds are near the top of a trading channel.  I don’t anticipate a breakout at this time.  As a result, a locking bias is prudent.