Fannie 3.5’s are slightly better than levels seen during their last major bout of weakness today, which in turn is slightly better than morning levels (which themselves are slightly better than yesterday’s low). Are we seeing a trend here? Yes…. Trends everywhere point to a sideways or consolidating pattern in anticipation of “something.”
The obvious question is whether or not that “something” is this weekend’s EU summit, but with yet another summit as early as 10/26 and more summit-related headlines than we’d care to read or even consider, one has to wonder…
One thing’s for sure: it’s nothing to do with tomorrow’s domestic economic data because apart from the ECRI (a traditionally inconsequential broad economic index), there is none.
But there will be some Fed-Speak.
Apart from that, markets remain at the whim (unfortunately) of every little headline out of Europe. Those, of course, don’t adhere to a schedule. So between that fact, and the lack of economic data, it could be an interesting day…