Market Update

Bond prices opened higher this morning, as Merrill Lynch, the country’s largest investment banker and broker, reported a far more massive 3rd quarter earnings loss than was expected. The entire Stock market is trading lower on this news, and this is helping Bond prices improve.
At 1 p.m. Eastern Time, the U.S. Treasury is going to auction $20 Billion in Two-Year Notes. A successful auction should support Bond prices this afternoon. This morning's activity shows continued buying pressure and this is a positive for Bonds; therefore, I recommend floating at this time.