Market Analysis

No significant economic news is on the calendar today.  The selling momentum continues to prevail in the bond market as investors are concerned that news yesterday about an increase in pending home sales for April may point to a bottoming out of the housing market.  Many investors believe that as soon as the Fed feels comfortable that we are out of the woods from the housing slump they will begin raising rates to to strengthen the dollar which should help bring oil (which is traded in dollars) prices down.  Below is an early morning trading chart from Larry Baer's Market Alert system which shows the continued decline in the Fannie Mae 5.5% 30 year mortgage-backed security.