Rate Watch: Carefully Floating

With a tough 200 day moving average just overhead, it is prudent to float for now, but be prepared for a change in direction. Boston Fed pResident Rosengren is scheduled to speak this afternoon which could cause a ripple in the Bond market. Oil continues to trade just below it's 200 day moving average, which is noteworthy, since the last time it traded below this level was in March of 2007, when oil was trading at $62 per barrel. It appears that in the Fed Fund Futures there is little chance that the Fed will raise the discount rate when they meet September 16th. I will watch the market carefully today and will let you know if there is a change in direction.