Mortgage Bonds faring better

Investors are reacting to China’s foreign trade slowdown which was reported well below expectations.  For many, this confirms more  global economic weakness, as the #2 economy in the world fell short of the target.  Stocks are holding minimum losses at the moment, but mortgage bonds are faring better as the repeatedly safe haven trade for world investors.  Interest rates have moved higher from the all-time lows seen just over a week ago, yet remain in a range that is still a huge benefit for many.  We will continue a locking bias at this time.