Mortgage Bonds continue to hover near multi-year support levels in the absence of any major headlines. New Homes Sales data will be released at 10:00am ET and could provide some volatility on this summer Friday.
This morning, James Bullard and DennisLockhart said that tapering of QE III is data dependent and there should be no rush to begin to ease back on stimulus in September. The headlines pushed Mortgage Bonds into positive territory. I would recommend a Floating bias, but as we know it can quickly reverse.