Market Update

Today is Thursday February 23, 2012

"Mortgage Bonds are drifting lower, and have now fallen beneath a key technical support level pushed lower as once again, Greece sends the markets into the weekend with assuring messages that a deal is close.

Also weighing on Bonds is rising inflation at the consumer level following yesterday's somewhat steamy read on inflation at the producer level. The Core Consumer Price Index (CPI) rose to its highest levels since October 2008.

For now, I am recommending a cautiously Floating bias as Mortgage Bond prices are well off session lows and as new levels of support emerge. Have a great weekend!"