Watch Monetary Policy

Mortgage Bonds are trading higher as the markets position themselves ahead of Central Bank action and Friday's important Jobs Report. What I am hearing is that QE3 will be $500 to $600B in more Bond buying - but this time, directed into Mortgage Backed Securities, thus the continued rise in Mortgage Bonds.

A slew of economic data hit this morning and the numbers were relatively near expectations with little market reaction.

I am recommending to float into the Fed's monetary policy statement that is set to be delivered at 2:15pm ET on Wednesday. If anything changes, I will get back to you.

Leonard Winslow
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