Fed Rate Hike? Watch the PCE Index Tomorrow.

Unfortunately our surmise yesterday that MBS bonds might be on shaky ground came to fruition.  During Janet Yellen's last final address on Capitol Hill this morning she indicated the economy would continue to be strong and that wages and incomes would continue to improve.  That rhetoric buoyed  stocks and took away the final bit of progress MBS bonds had made over the last few weeks.  Tomorrow the Personal Consumption Expenditures (PCE) index will be released.   The PCE is the Fed's favorite measure of inflation and may well determine whether the Fed will raise its rate in December.