07 May Locking Bias
It turned out to be a fairly quiet day for bonds yesterday, but movement resulted in trading slightly below the 200 DMA. There are no economic reports scheduled today, but stocks have pushed higher once again to new all-time highs. The bond market will also see $32 billion in auctions today, and another $40 billion over the next 2 days. Given the lack of news, momentum in favor of stocks. Given that bonds are currently in an overbought state, we will suggest a locking bias on short term transactions.