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Just like my kids’ elementary school today, there is nothing going on in the financial markets.  As the school year winds down and we are all preparing for the first summer vacation next week, money stops trading hands and the markets quiet.

Tracking interest rates, the 100 day moving average (which represents a strong pricing support level) has been creeping ever upward to meet the current MBS downtrend and fortunately has helped stabilize prices over the last six days.

If it breaks through, the next floor of support would not kick in until interest rates have risen another 1/4%.