Good Friday AM,
Stocks are off a bit as the Senate still hasn’t voted to extend government funding for another week after the House pushed through a bill to do so yesterday. The Senate could vote on it today, but if not, that means the government will enter a partial shutdown. Unlike days past, a shutdown doesn’t seem to concern investors much, but it could be part of what is helping bonds today… along with the hang up on the Covid relief plan, business Covid liability, and giving money to local and state governments. Although McConnell wants lawmakers to push on with a smaller bill that doesn’t include either of those things for now, Pelosi won’t give in yet on the funding. With that, Treasuries are strong this morning and Mortgage Bonds are holding firm. The 10-yr is below .90 and .89 and overall, both look bullish. It is still safer to lock than float.
Please remain safe and healthy, enjoy the weekend, make today great!