Just 2 little things...

There are two little things that we are all waiting to see just how they effect the bond market.

1. OPEC may release a statement on reducing the supply of oil produced in the future.

and

2. the whole N. Korea nuke test thing. You've read the news so I don't have to re hash it all for you. The important part is really what the US reaction will be, or more importantly what the perceived US reaction or better still "Action" will be.

If it looks like we may be going into another conflict soon, the big money usually pushes towards the defense stocks, thereby drawing bucks out of the pool for T-notes and mortgage backed securities. (supply and demand says that means higher rates).

President Bush had a brief statement this morning just after the stock market opened but initially they had little or no reaction. Only time will tell.

But this being Columbus Day, the bond markets are closed today so "time" isn't going to tell us today...