Floating bias

One would be hard pressed to find anybody that hasn’t had enough political rhetoric by now.  Well, the country certainly needs direction and today is our chance to decide who should lead it for the next 4 years.  Markets opened to the upside, with the Dow higher by 90 points at the moment.  Mortgage bonds are lower from the pressure of stocks.  In addition, mortgage bonds will have bond auctions to contend with this week, which could add to the mounting pressure.  Much of the market commentary is saying the outcome of the election will not be a significant game changer either way.  We all know there are major issues to be dealt with and the next president won’t be able to fix anything too quickly.  We will continue with a cautious floating bias.