:Tomorrows standout economic report is the final reading on Q1 GDP. We are expecting Durable Goods to be down slightly and GDP up slightly but still anemic around 1.8%. The Treasury will sell $35B 5-yr Notes.With todays move higher and close above resistance at the 25-day Moving Average for the 3.5%, we will change our position and recommend floating rates. Mortgage Bonds rose at the open, but quickly lost their way after the better than expected New Home Sales and Consumer Confidence data. However, near midday, reports surfaced that there were escalating tensions in Iraq, which gave Stock investors an excuse to take some profits. The 3.5% coupon rose by 28bp to end the session at 102.41, and as mentioned, above resistance at the 25-day Moving Average. Stocks fell - the Dow lost 119.13 points to 16,818.13, the S&P dropped 12.63 points to 1,949.98.
Posted on: Tue, 24 Jun 2014 22:40:00 +0000
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