Markets opened with stocks moving lower after a big day of gains on Tuesday. The good news of yesterday was a catalyst to move stocks to all-time highs, but that same news has now pushed the Dow lower by 170 points. mortgage bonds are slightly positive for the moment, but their gain is capped relative to stocks losses. The bond market also has $35 billion in 5 year Notes to auction today, and yesterday’s 2 year auction was very weak. The results could send bonds lower. With the next level of support quite a bit lower, should we break below this we will likely see mortgage rates take another jump higher. With current rates at highs not seen in over a year, we will suggest a locking bias until prices look to stabilize.