There is nothing scheduled to take place tomorrow or Tuesday besides tomorrow’s Senate vote on funding to end the shutdown. We saw the benchmark 10-year Treasury Note yield break above a key resistance level of 2.63% last week. While that is a concern for mortgage rates, we need to see what impact the shutdown will have on bonds. An extended shutdown should have a negative impact on the economy and with stocks at or near record levels, it is a good opportunity for profits to be taken by investors. If that is widespread, the stock selling should cause funds to shift into bonds, especially with yields at their current levels. On the other hand, a quick resolution in Washington will prevent much of an impact on the economy, meaning we could see the negative momentum in bonds continue in the immediate future.