August is the slowest month of the year in financial markets. Many participants have surrendered their Blackberry(s) and will be detached from reality, off and on, until school goes back in session at the end of the summer. Heck, even those who've just returned from their "detachment" will be somewhat "zoned out" as they play catch up. Don't forget this when you see choppy price behavior  in the day's ahead. Major decision makers are stepping "OUT OF OFFICE" and markets will be left to run wild in whatever direction is least resistant.

Stocks and bonds are both thinly traded this morning.  Rate sheet influential MBS prices continue to hold at record levels.