Per the Labor Department, today’s economic report of the lowest Initial Jobless Claims since April of 2006 is largely being ignored due to inaccuracies from a few states. The number came in at 292,000, which was 31,000 less than the previous week. Stocks and bonds are virtually flat, with no catalyst to push investors either way at the moment. The next big event will be the FOMC meeting, which occurs next Wednesday. Investors will be all ears in regards to tapering. A cut in treasury buying is somewhat expected, but it would be a surprise to cut back on mortgage bond purchases based on the quick move higher that interest rates have experienced. Then again, maybe most of the move has taken place already. Either way, volatility will abound. Tomorrow has PPI and Retail Sales on the calendar. mortgage bonds are still in the middle of the contracting trading range, so we can hold with a cautious floating bias for now. While we remain at in this range, we will suggest locking when at the top and floating while at the bottom.