Locking Stance: CAUTIOUSLY FLOATING Mortgage Bonds: +47bp
I think there may actually be some sanity in Congress today as the House voted down the $700 billion bailout bill. I have not heard about the Senate’s reactions yet, but the news shook the markets, causing hefty “mood swings”.
The bottom line is that even after the mood swings, bonds are still looking good for the longer term and floating is the better choice right now.
