Mortgage Bonds experienced some interesting movement this week as the Federal Reserve Chairman, Ben Bernanke, testified before Congress, Wednesday & Thursday. The Bond "rally" came amidst Mr. Bernanke's statements that the economy is growing and inflation is moderating.
Mortgage Bonds improved the week by about 30 Basis Points (bp) before being capped by some stubborn overhead resistance. The Consumer Price Index, which shows Inflation at the Consumer level, is set to be released next week. There is hardly any doubt that this will cause the markets to move.
But, in what direction ?
