The government may have shut down, but the markets opened with all major stock indexes moving higher. This is the 18thshutdown since 1977, and Congress has yet to come to an agreement. Currently, all nonessential governmental departments will be closed until an agreement is reached. The shut down will likely delay Friday’s scheduled monthly Jobs Report. mortgage bonds moved lower at the open, and are trying to get back to the positive side at the moment. Interest rates have moved lower since the beginning of September, with mortgage bonds sitting right at a strong level of resistance. This is a pivotal place for bonds, because a break higher will be entering territory not seen since rates pushed up so quickly in May and June. But a strong break lower is exactly what happened at this point in June, and bonds have enjoyed a strong move up in a relatively short period of time. With the recent strength in improving unemployment numbers, we feel the Jobs Report could exceed expectations. We will be closely watching tomorrow’s ADP Report since Fridays official report will likely be delayed. Locking short term transactions would be a safe play.