Good Tuesday AM,
Stocks down marginally and bonds flat. Well, mortgage bonds are flat. The 10-yr is doing well at .64% and we will see if that can spur any additional buying to help rates a bit more. Mortgage bonds are at the top of their range and as range bound trading is always the rule with breakouts being an exception, I doubt we will trade out of this range until Friday. Let’s not rule out any volatility for tomorrow as tonight’s debate could be interesting and market moving. We may not see much in the way of politics, but I’m looking forward to having some popcorn watching the theatrics. Consumer confidence was released today and it smashed expectations. This is not a bond friendly surprise and will likely add to the pressure bonds are under after being rejected at the top of the range. At some point, one or both candidates will have to ask the question aloud, whether you feel better and are happier now than you were four years ago. Maybe, that’s not a definable metric but I think it is germane.
Please remain safe and healthy, make today great!