"Both Stocks and Bonds have seen wild swings this morning, as concerns over the potential for a global recession increase.
In other news, New Home Sales came in higher than expected and the inventory of unsold homes fell to its lowest level in four years. The rest of the week is full of economic reports, but the main focus will be on Wednesday, when the Fed will likely cut the Fed Funds Rate anywhere from 50 to 75 basis points.
Currently, Mortgage Bonds are trading below an important level of support, and my sources indicate that a rate cut on Wednesday is very likely. Therefore, I recommend locking. I will continue to monitor the situation and keep you updated."