End of day Update
Bonds spent the afternoon in a tight range, with the 10-year government yield finishing at 2.24%, up a couple bps from earlier in the day, and MBS 5 bps lower.
Next week we'll see the Fed minutes from May 3rd, home prices, GDP, and University of Michigan Sentiment. Have a great weekend.
What's going on and why does it matter?
Mortgage bond prices opened lower today as the DC drama died down for a change overnight. Stock prices are starting to recover and bond prices are starting to retreat from their lofty levels. There is only one Fed policymaker who is scheduled to give a speech today, and there is nothing else on the economic calendar. This brings a quiet end to what has been a tumultuous week for the financial markets. The Fed's mortgage bond buying activity today is limited to $975 million of GNMA mortgage bonds.
What should you do about it?
Lock your rate while bond prices are at the top of their recent trading range.