Market Update

Mortgage Bonds are trading modestly higher this morning based on continued weakness in Stocks, which is triggered by earnings losses from mortgage exposure. The Initial Jobless Claims was also reported well above expectations, which is good for the Bond market because it eases the threat of labor-based inflation. At noon Eastern Time today, the Philadelphia Fed Manufacturing Index for October will be released. If a number above or below expectations is released, it could spark a market reaction either way. For now, I will continue to recommend floating. However, I will be keeping a close eye on the Bond as it approaches several layers of overhead resistance.