Monday's bond market has opened in positive territory despite early stock gains and stronger than expected economic data. The stock markets are starting the new decade with a sizable rally. The Dow is currently up 133 points while the Nasdaq has gained 32 points. The bond market is currently up 6/32, which should improve this morning's mortgage rates by approximately .375 of a discount point over Thursday's morning rates.
The Institute for Supply Management (ISM) gave us today's important data when they posted their manufacturing index for December late this morning. They reported a reading of 55.9, meaning that manufacturer sentiment about business conditions was stronger than thought. This normally is bad news for bonds and mortgage rates since it points towards a strengthening manufacturing sector. However, fortunately for mortgage borrower it appears that the data is being ignored this morning.