There were no changes to rates today from Friday. The financial sector is dragging stocks lower this morning following the announcement that Wachovia is ousting their CEO. The Dow Jones Industrial Average is currently down over 100 points which is helping mortgage-backed bonds move modestly higher.
Looking ahead, Friday brings us the monthly jobs report which we all know can move the markets.
Despite the gains this morning in the bond market we still think mortgage-backed bonds will drift lower over the next few days/ weeks because of technical trading patterns. We remain in a locking position for now.
Current Outlook: locking bias