It’s Monday and we’re on cruise control for the most part as there are no economic reports to shake things up. Comments from ECB president Mario Draghi are pressuring European bonds and that seems to be the only catalyst that is spilling over to US bonds as they are in the red as well.
We will see Consumer Confidence and some Case Shiller housing numbers tomorrow, but the main event for the week will be Wednesday’s FOMC rate decision on Wednesday at 12 p.m. MST. This could ignite the next move the markets make, and while we hope that results in lower rates, we must remain objective and face the dominant trend of the last month of rates pushing higher.
Given the probability of rates pushing higher, we will maintain a locking bias.