Mortgage bonds are trading -6 bps this morning with no economic data on the docket for today. Fed chairman Bernanke is speaking this morning about the economy and he could move markets, other than that bond trading will be driven by the stock market (stocks up bonds down vice versa)
Bonds did close above the 200 day moving average yesterday and if those levels can hold today bonds rates should be trending lower for the next few days. Some employment, productivity and manufacturing numbers are to be released tomorrow that could sway the markets, but for now I recommend a FLOAT as we still trade above the 200 day moving average.
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