Monday's bond market has opened in negative territory, extending last week's generally negative tone. The stock markets are flat with both the Dow and Nasdaq nearly unchanged from Friday's close. The bond market is currently down 8/32, but we will still likely see a small improvement in rates due to strength in mortgage bonds late Friday.There is no relevant economic data scheduled for release today. This makes it likely that any changes to mortgage pricing will come from swings in stock prices. If the stock markets move higher from current levels, we may see bonds worsen and mortgage rates revise higher later today. If the major stock indexes move lower, mortgage rates may follow suit.
The rest of the week brings us the release of three economic reports along with the 10-year Treasury Note and 30-year Bond auctions. All of the data will be posted the latter part of the week. Only one of the three reports is considered to be of high importance to the markets, so today may not be the only day we look towards the stock markets for bond direction.