MBS pricing continue to deteriorate, causing interest rates to rise a touch this week across the board.  There is a 99.0% probability that the FOMC will leave their overnight rate unchanged tomorrow, but they are expected to address the signs of an economy that is slowing down.  It will be interesting to hear the sectors and the measurements they are focusing on.

Uncertainty about the continued strength of several market sectors SHOULD be enough to see interest rates reverse course and move downward.  However, it is unnerving that bonds have not been the recipient of all that cash leaving the stock market over the last three weeks.  Guess that’s why they say that past performance does not guaranty future results.  We’ll see what happens together.