Maintaining a Floating Status

Hurricane Sandy has caused the NYSE and the Nasdaq to suspend trading for today, and the bond market is scheduled to close at 12 pm ET as a result as well.  The storm is expected to make landfall this evening sometime around 7-8 pm.ET.  Bonds are positive this morning in response to PCE showing inflation remaining in check.  mortgage bonds have moved higher for the last 3 days, helping to push interest rates lower after steadily creeping higher for the last 3 weeks.  We will maintain a floating bias.