17 Jul Quiet News Day
Although many Americans are feeling good about the future of the US economy, it seems there are many dark clouds still dampening the outlook. For one, the US economy is not performing as strong as most economists anticipated it would. Although consumer confidence shot to all time high levels following President Trump’s victory, it seems that many have soured towards the hopes that his addenda can be executed. From healthcare to tax reform, the battle has so far not been easy for the Republicans who currently have control in the House and the Senate. They also have not been able to pass most of their planned objectives. We should learn soon how the CBO feels about the revised healthcare plan. Republicans are bracing for the report, hoping it looks good enough to convince their opponents that it’s a good plan for America. We will have to wait and see.
Today is a relatively quiet news day, so the technical picture will greatly dictate the direction of mortgage rates today. With the stock market now at new all-time high levels, bonds may have a difficult time making any significant ground today. Bond prices currently remain trapped between their 100-day moving average below and their 25, 50 and 200 day moving averages. Unless we experience an event significant enough to push bonds through the multiple layered ceiling above, we will likely remain stuck in the current channel.
For the time being, we will maintain our locking bias.