Week full of economic reports

Markets opened positive for both stocks and bonds this morning.  This is also a week packed full of economic reports, with PCE and Pending Home Sales released already.  Personal Consumption Expenditure was in line and inflation remained in check.  Pending Home Sales beat expectations as well, with contracts reaching their highest level since April of 2010.  The 2 day FOMC Meeting starts tomorrow and concludes on Wednesday, with monetary policy to be announced at 2:15 pm ET.  It’s the week for jobs reports as well, with ADP, Initial Jobless CLAIMS, and the Labors Department’s monthly report on Friday.  Earnings continue to pour in as stocks approach all-time highs and the NASDAQ hitting a 12 year high today.  mortgage bonds are above their MA’s, but are also in overbought territory.  If stocks break out to the upside, pressure will fall on the bond market.  We will suggest a very cautious floating bias.