Cautiously Floating Bias

After an extended three day holiday, mortgage bonds are fighting to stay above the 100 day moving average. Without much news this week, I anticipate bonds will continue to trade in a sideways patternuntil there is something compelling enough to move them in one direction or another.  If bonds are able to build strength above the 100 DMA, this will be a good indication of a bit of stability in the bond market. As long as we stay above the 100 DMA we will have a floating bias. Should bonds break below, we will quickly shift to a locking stance.