26 Jul Floating Bias
Yesterday’s Treasury auction turned out to be better than expected, and that helped bonds close to the positive. The University of Michigan Consumer Sentiment came in higher than expected, hitting the highest level since July of 2007. While that may sound good for the headlines, July 2007 precluded a fairly rough economic turn. That’s not saying we are necessarily headed for another huge recession, but it does make you wonder who they are asking in these surveys. mortgage bonds were higher this morning, but have since pulled back to even after the news. Prices are clinging above the 25 DMA, which is still a positive given the overall auction results this week. Next week will be the big employment report and Fed meeting, which could be market movers. We are hoping to float into next week’s news. We will start with a floating bias.