Locking Stance: LOCKING Mortgage Bonds: +19bp
Mortgage bonds are higher this morning on news, such as Wachovia ousting their CEO. However, they are not likely to muster the strength needed to break through their 200-day moving average and odds favor them falling instead.
This morning’s only data was the ISM Index and it beat expectations, continuing the trend of better than expected news on the economy. That will weigh on bonds today as the news gets digested, so barring bad news for stocks, bonds will not gain much and may even falter today.
Once again, I elected to forego the Week in Review and Forecast Posts as there is simply not enough time, so please visit Lenderama for my weekly update there.
