Bonds are trading decently this Friday morning even with a better-than-expected January Consumer Price Index and Core CPI readings, which strips out volatile food and energy. Stocks rallied hard this week and bond yields climbed mildly after a brutal couple of weeks of trading. U.S. employment readings remain positive despite concerns over oil, China, and worries of a potential global recession.
Technically, mortgage bonds continue to trade just above support levels. With the 10-year U.S Treasury note trading near 1.76%, interest rates remain extremely attractive and we continue to remain biased toward locking in interest rates at these low yield levels.
