Mortgage bonds began the day underwater by over -35 bp, but have since recovered some of those losses sitting now at -19 bp. With no economic news today, bonds will take the lead from the stock market. Currently stocks are up on the day, as bargain hunters help to spur a small rally.
Yesterday’s wild ride in the bond market seems to be tempering. Long term, rates should continue to show some improvements, but for now to appears that we have hit a temporary pricing peak. Hopefully you were able to lock on yesterday’s morning rate sheets. For now we are floating, but very carefully as the market could easily turn sour. The rest of the week is packed with economic news, so be prepared for a volatile and wild ride!
