Mortgage Bonds continue to try and stabilize after Friday’s big drop due to the better than expected October Jobs Report. Renewed QE tapering fears are hurting Stocks and the catalyst for the bounce higher in Bonds so far today.
There are no economic data points being released today, but the Treasury will be selling 10-Year Notes and the results could impact trading when released at 1:00pm ET.
We will continue to recommend a cautiously floating bias, but be aware that in this fast moving market, sentiment can quickly reverse. If anything changes, we will update you.