Shutdown continues to dominate the news

Shutdown continues to dominate the news

Initial Jobless Claims came in at 308,000, which was below expectations of 315,000.  The shutdown continues to dominate the news, but more stories are pointing to the debt ceiling deadline that is approaching fast.  Headlines with descriptions like “Catastrophic”, “Extreme Idiocy”, and “Reckless” are everywhere in describing what could occur if an agreement is not made.  It sounds like politicians are getting what they want, more attention and the opportunity to look like they will save the day for all of us incapable people.  Let’s not forget how they get to their positions…  mortgage bonds are holding on to the same area still, but it’s not likely that they will move above the 200 DMA without a significant catalyst.  Stock indexes are lower, with the Dow down by over 100 points.  Any sudden announcement that Congress has reached an agreement could cause stocks to rally and pressure bonds to sell off.  That selloff would push interest rates higher, so locking short term transactions is a safe play.