Geopolitical/Financial Issues
Today has nothing of importance scheduled, the only day of the week without at least one item. There were some mixed economic and inflation headlines from overseas, but none of them stand out as a good reason for the overnight selling that extended into this morning’s session. The weakness contradicts expectations for a bond rally going into the government shutdown deadline this Saturday. Such a rally would likely improve mortgage rates noticeably. After Friday’s gains, it looked as if the trend had already started. There still is time for a reversal, although we are a bit less optimistic this morning.