Not much change from Monday...

Stocks are down currently as a result of Target's sales numbers and the Case-Shiller Price index showing the largest decrease in home prices in 6 years.

Bonds are trading fairly flat to slightly improved this morning with the FNMA 30 yr 6.0% coupon at 101.03 Bid price.

30 year fixed PAR NOTE rate : 5.75% -5.875%

Lock Comment:

Decreased trading volume over the holiday season opens the door for volatility.  So changes that wouldn't normally have a big impact on markets can have a much bigger impact over the next week.  Durable Goods, Jobless Claims, and Consumer Confidence will all be released tomorrow.  If these are weak, we could get a nice rate improvement.  But the opposite is just as true.  Float with Caution.  Keep an eye on stocks today.  As for tomorrow, if you think the reports might be weaker than expected, keep floating.  Even if bond prices push lower yet again tomorrow, technical factors would indicate that prices will "see-saw" back up, even if they continue to trend down.