Market Comment

Bond prices touched the ceiling of resistance at the 100-Day Moving Average this morning, before retreating below the 25-Day Moving Average.

In the news, New Home Sales for January were reported below expectations. While weather was undoubtedly an issue, it does underscore the persistent weakness in the housing market.
Currently, Bonds have support nearby at both the 50- and 200-Day Moving Averages.

Therefore, I recommend floating for now, as I watch to see how Fed Chairman Bernanke’s Congressional testimony as well as today’s Treasury auction are received by the markets."

Leonard Winslow, New American Mortgage, Charlottesville
434-760-2580 (cell)
leonard.winslow@newamerican.com
www.newamerican.com/leonard.winslow
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