Good Monday AM,

Bonds are off a bit this morning on no news (and a quiet news week ahead). Having a few quiet and sideways days is what we want after the big move up. Price needs to stabilize and then build a base at these higher levels. In essence, we need to build the flat part of the step that belongs to an upward trending staircase. We do not want to take the elevator straight up, we are looking for the staircase. The one line of thought I am leaning toward is despite some recently stronger data than expected (which is another discussion altogether as increases from severely depressed levels don’t mean increases, they just mean less losses), I remain bullish on bonds and continue to believe the economy is not in as good shape once the effects of the stimulus money run dry.

Please remain safe and healthy, make today great!