That's about all there is to say...
The 100-28 support level holding firm...
"other" MBS sites coming out with lock requests...
Historically supportive month end, plus wide spreads, plus absent headline risk, plus 100pts down in dow...
My question to you is how could you NOT be floating right now?
I've received some feedback over the past 30 days saying, "it seems like you always advise floating... etc..."
Hmmm... Mid July levels in the mod to low 99's and current levels almost 2 points YSP better, plus my caveat that we might need to wait 3 weeks or so... I wonder why we've been "float biased" recently? (for the 3 out of the 2500 readers that doesn't like or get it, that was sarcasm).
Sure, there can certainly be some wisdom in locking in at the top of the recent market, but no sense in doing so this morning.
Take a look at your lock cut-off time. When we approach it, ask yourself "is the removal of risk worth the price I might lose?"
Of course, that will always depend on your time horizon. Short time horizons should always be lock biased, but in our context, "short" means days not weeks. If you have weeks, you are still warmly invited to the "float club."
Considering the economic data plus the 4 previous days of strength, MBS has no right to be "even" day over day. All right, enough discussion... Everyone: Back in the Pool! But don't tune out just yet...