Very careful float

Very careful float

Mortgage Bonds are trading higher due to high Treasury prices after a strong auction of Japanese Government Bonds. China’s lower than expected trade performance rekindled global growth fears, which is causing a boost in Bond prices.  Stocks are lower on the news, while investors take profits after the 9% rise in the S&P since February 11.

 

It will be quiet today as there are no economic reports due for release today.

 

Oil prices did continue to gush higher yesterday and were also higher earlier this morning before falling into negative territory.  WTI oil was at $38 per barrel this morning, up from $26 on February 11.

 

Fannie Mae reported that in February consumer confidence increased on two topics. One was the belief that they would not lose their jobs and two is that now is a good time to buy a home.

 

The technical picture shows Bonds continuing in their sideways pattern above support at 104.38. This is a level it has not closed below since February, but did close at yesterday.  At this point, we can very carefully float, but if support is breached, we will quickly switch to locking.