More Vaccine Advancements

Stocks are up this morning in response to some great news regarding the distribution of the COVID. Moncef Slaoui, a chief advisor of Operation Warp Speed, claimed that the Pfizer vaccine should begin distribution to the general public by mid-December. Slaoui went on to say that if distributions of the vaccine go as planned, the US will have enough people vaccinated by May 2021 for life to begin to go back to normal. In addition, AstaZeneca, the third company to release a vaccine with over 90% efficiency, finished their clinical testing and is creating distribution plans as it waits for approval. Now, nobody knows how this is actually going to play out, but the stock market is showing hope.

Like we talked about on Friday, despite the short week, we will be getting appreciation data, GDP, new home sales and PCE later this week.

Mortgage backed securities are down this morning in response to all of the positive COVID data that came in over the weekend. Because of the expected volatility caused by more news about the vaccine and the large amount of room that mortgage backed securities have to the down side before their next floor, we are holding a locking bias.