Good economic news in the market is not helping Bonds this morning. With the good news, Stocks are still suffering here and especially suffering internationally and specifically in Japan where profits for major companies have been announced and profits are off.
Existing Home sales here were reported at a 5.50% increase over last month and at their best levels in 13 months. Oil is down again today to $64 per barrel, and just like when the dollar was weak and we saw $146 per barrel oil, the dollar is gaining strengh against foreign currencies and oil prices are dropping. As you have heard before in my Rate Watch, lower oil is good for bonds (lower inflation).
For now, on the technical side, since we have now gone below the important 200 day moving average, I am recommending Locking as we continue to see Bond prices erode since yesterdays alert to lock and prices again opened lower this morning.