Locking Bias

It’s day 9 of the government shutdown, and the political utopia continues on.  Markets opened with stocks pushing lower, and bonds holding steady.  The Fed Minutes are scheduled to be released today, but any affect will be muted due to the dominating government dilemma.  The bond market has a $21 billion auction today, but that will take a back seat to politics as well. mortgage bonds have maintained their position just under the 200 DMA, and that has been the case for close to 3 weeks of trading.  We will maintain a locking bias on short term transactions due to the volatile environment we are in.