By Ben Bauer

It’s Fed Week. Mortgage Bonds are starting the day modestly higher as investors brace themselves for Wednesday’s Fed Monetary Policy Decision. The Statement will be delivered at 2:00 p.m. ET on Wednesday and will be followed by a press conference. There is no chance of a hike, but what is said in the statement and press conference could move the markets, so have clients ready later this week. There are no economic reports due for release today but the rest of the week is chock full of reports. The Treasury will not be selling any Notes or Bonds this week. If the 10-year Note falls lower in price, pushing the yield above 2.00%, the entire Bond market will likely slip lower. However, we think 2.00% could very well likely be a pivot point for Bonds, representing a turning point where prices may actually climb again and revisit some of the better rates seen over the past couple of weeks.