Mortgages rallied last week as U.S. 10yr treasury yields fell 14bps on the week, the strongest performance since April 2017. The S&P 500 and DOW fell 4.60% and 4.50% for the week on Friday, -2.33% and -2.24% respectively, and are now back in the negative territory for 2018. The 2s5s curve inverted for the first time since 2007 and the 2s10s curve is near 13bps this morning. However, the curve steepened into the end of the week as the market continued to price out the Fed interest rate hikes in 2019. Market expectations are pricing near 50% probability for a March interest rate increase and near certain hike next week.