Mortgage Backed Securities (MBS) prices, after a brief dip into negative territory early this morning, are hovering near unchanged from yesterdays close.

The dismal economic reports on housing (record low housing starts, building permits & builder confidence)were offset by the lower than expected inflation figures (-1.7% CPI, 0.0% Core). Traders are waiting for Fed announcement on rates at 11:15am pt.

Rates are at historic lows, do not let them float away!

Cheers,

Ian Bennett