Weekly Outlook

Current Trend: Trying to break through the 200 day moving average
Risks Favor: Locking
Current Price of FNMA 6.0% Bond: $99.94, + 3bp

With no economic news scheduled to be released today or tomorrow bonds will more than likely remain flat. However, bonds are currently a little overbought and investors could start unloading some of their gains. If that is the case, prices will fall quickly.

Wendesday & Thursday will be a good indication as to where the Housing Sector sits. Existing Home and New Home Sales will be released and watched carefully by economists. The same downward trend should be expected due to certain regions of the country cooling off considerably.

Lastly, the Durable Goods Orders is scheduled for Thursday. This report is reflective of manufacturing activity and consists of items expected to last longer than three years; it could have the greatest impact this week on the bond market and rates. From a technical standpoint bonds are overbought so keep that in the back of your head when deciding whether or not you should lock or float.

August 23  Existing Home Sales         Moderate
August 23  Crude Inventories             Moderate
August 23  Durable Goods Orders       Moderate
August 23  Jobless Claims (Initial)      Moderate
August 23  New Home Sales              Moderate