http://MikesDailyMarketReport.com: Investors were watching the renomination of Jerome Powell to Fed Chair today. The Fed Chair indicated that the Fed has not yet discussed how they will reduce the Balance sheet; and indicated that they may not discuss for another 3-4 meetings. But there are a few Fed Members out there whom have indicated they'd like to see the Balance sheet aggressively reduced; which means the Fed may even sell their holdings (along with not reinvesting its holdings that have matured). This could be bad for bonds, as it would greatly reduce the demand in the Market and further pushing up rates. Both Stock and MBS Markets were in the Red prior to the Renomination, but have since improved to Positive Territory. MBS are now Up 8bps. Mortgage Rates are currently about the same as yesterday's close. We're hoping to find some type of floor for MBS, as Yields seems to have found a ceiling, which has held over the past 3 trading days (about 1.77%).
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