MORTGAGE MARKETS

"The market volatility continues as Mortgage Bonds are trading higher after yesterday’s 34 basis point sell-off. Prices still remain below a very tough and now tested ceiling of resistance at the 200-day Moving Average.
The Preliminary Gross Domestic Product, or GDP, for the second quarter was revised to 4.0%, which was slightly below expectations of 4.1%. The number is better than Q1, but still a bit on the slow side.
Traders will be very focused on tomorrow's action which includes a speech from Fed Chair Ben Bernanke and the release of the Core Personal Consumption Expenditure; the Fed’s favorite measure of consumer inflation.
For today, I am recommending to float ahead of tomorrow's events."