Market Update

Initial Jobless Claims were reported lower than expectations this morning, suggesting that the labor market continues to be resilient. This news is weighing on Bond prices in early trading.The weaker dollar, which makes our products less expensive to foreigners, has helped the Balance of Trade for August, which is currently at it's narrowest deficit since last January--and could be good news for inflation.But Bond prices are lower and have been unable to make a positive move higher on this good inflation news. Bonds have broken through some key levels of support and are just above a third level of support. For now, I will recommend to cautiously float as I watch to see if Bonds can hold their current ground.