TAX REFORM is moving ahead. Rates move UP
MBS are down -4/32 (FNMA 30-yr 3.5 at 103.07), close to morning levels. Reports that the Trump administration and Republican lawmakers have made progress on tax reform lifted stocks and hurt MBS today. Proposed changes in tax policy would be pro-growth overall, which caused investors to raise their outlook for future inflation. No economic data was released today. The Dow is up 200 points. Tomorrow, New Home Sales will be released at 8:30 et.