Monday - February 24, 2014, 10:30 am ET

Current Trend Direction: Sideways to lower, beneath resistance at the 200-day Moving Average

Float/Lock Bias: Locking short term, days to a few weeks

Current Price of FNMA 4.0% Bond: $104.16, -3bp

Mortgage Bonds begin the week near unchanged levels, weighed down by the continuing rebound higher in Stocks. Additionally, the specter of the Treasury selling $96B in Notes and Bonds this week is adding some weight to the Bond Market.

There are no economic reports today, but the rest of the week's calendar features housing, manufacturing, U.S. growth from GDP data along with the usual weekly initial jobless claims readings. New Fed Chair, Janet Always Yellen will be on Capitol Hill on Thursday in front of the Senate Banking Committee for the 2nd part of her semi-annual testimony on the economy and monetary policy, which was postponed a few weeks ago due to weather.

The breakdown for the Treasury auctions are - $32 billion 2-year Notes on Tuesday, $35 billion 5-Year Notes on Wednesday and $29 billion in 7-Year notes on Thursday.

Technically, the 4% coupon continues to trade below resistance at the 200-day Moving Average. We continue to recommend a locking stance in the short term, which is measured in a few days to a few weeks, until such time that the Bonds breaks convincingly above that resistance layer.

Joe Shamie NMLS # 241432

First Choice Loan Services NMLS # 210764

First Choice Bank NMLS# 177877

866-970-3400 x-5135

jshamie@fcbmtg.com