Mortgage Bonds are trading just above important support at the Rising Trendline, and with no economic reports scheduled for release today, pricing could be influenced by action in the Stock market. After a rough start in 2009, Stocks are hovering right near important support as well, and could bounce higher from here.
Adding a slightly positive tone to Stocks this morning is news that IBM beat earnings estimates for the 4th quarter. The tech bellwether said it also plans to earn $9.20 a share in 2009 versus expectations of $8.70.
After a few days of pricing pressure, Mortgage Bonds are trading near oversold conditions, which could make prices ripe for a reversal higher. Couple that with the strong underlying support from the Fed and it suggests for the time being to float.
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