Mortgage Bonds are trading higher, as Stocks trade slightly lower. There are no high-impact economic news reports scheduled for release today, so Bonds will likely take their direction from Stocks.
In other news, it appears a $15 Billion rescue plan for GM, Ford and Chrysler is close to agreement in Congress. Also this morning, news reports indicate that five members of the House Financial Services Committee are sponsoring a bill that would force the SEC to reinstate the uptick rule. Since the removal of the uptick rule in July 2007, market swings have gone wild. So reinstating this rule could help alleviate the excessive volatility in both Stocks and Mortgage Bonds.
For now, Bonds are holding steady at current levels. Therefore, I recommend continuing to float. I will keep an eye on the markets and let you know if the situation changes.
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