All quiet on the western front ahead of today's events that include Fed Chairman Bernanke's testimony in front of the Joint Economic Committee on Capitol Hill that is scheduled to begin at 10:00am ET. When it comes to deciphering when QE3 will end - look no further than Big Ben. Whatever he says goes and rest assured the markets will be listening. We are sticking to our position that QE3 will run beyond year end and likely longer than most would think.

Existing Home Sales will be released at 10:00am and follows last week's plunge in Housing Starts. In addition, the FOMC minutes from the May 1 Fed meeting will be released at 2:00pm. The backward looking Minutes may not be as much of a market mover since we will be hearing in real-time what Mr. Bernanke has to say.

There was some good news on the foreclosure front - Lender Processing Services reported that Americans in foreclosure process declined by almost 25% since April of 2012.

Mortgage Bonds are building on yesterday's nice bounce off of support. We recommend Floating ahead of today's events, while seeing if prices can follow through on the positive momentum.