Mortgage Bond Comment

Mortgage Bonds are higher this morning, as they follow through on yesterday's rally.
Helping give Bonds a lift was good news on inflation from the Labor Department. Worker Productivity came in better than expected and rose at its fastest pace in 6 years, as companies cut costs and try to maximize output from their current staff. This efficiency helps curb inflation, which is good for long-term Bonds like Mortgage Bonds.Currently, Bonds are higher after breaking above resistance this morning. I recommend floating for now, as we watch to see how today's Treasury auction of 3-year Notes is received. I will keep you posted on any major developments.

Leonard Winslow, Dominion Trust Mortgage
434-760-2580 (cell)
leonard.winslow@dominiontrustmortgage.com
www.dominiontrustmortgage.com/leonard.winslow
Licensed by the Virginia State Corporation Commission. License #: MC-5112.