Morning Report - all about the FOMC minutes this week.

Markets are higher on election results in Brazil, which is putting a bid under emerging markets. Bonds and MBS are down small.

This week has very little economic data to worry about (typical for the week after the jobs report). The most important event will be the FOMC minutes on Wednesday.

The banking system is loading up on Treasuries. They have all this cash that they are not putting to work. Of course all of the lawsuits and buyback demands isn't helping things. Another interesting data point - S&P 500 companies are spending 95% of their profits on buybacks. This speaks to the lack of investment opportunities that companies see. It is the quintessential vote of economic pessimism.

A marriage of right and left - a new 15 year mortgage that uses the downpayment to buy down the rate closer to zero. A pilot program is already up and running. Interesting idea.

Last week's decision on Fannie and Fred left investors with a bruising. The plaintiffs vow to continue the fight, however understand that Fannie and Fred common stock is a litigation lottery ticket. The only way it is worth any money is if a court overturns the legislation forming the FHFA.