the climate is slowly starting to turn and higher rates
Although rates have recently dropped, the climate is slowly starting to turn and higher rates may soon be here. Mortgage backed securities still trending higher and we are in a neutral position. Technically, bonds continue to trade sideways within the well defined upwardtrend. Prices may continue this sideways pattern until the arrival ofFriday’s Jobs Report. Presently economists are forecasting 120,000 new jobsto be created. However, we need to keep a close eye out, as process couldreverse from their present lofty levels rather quickly.