Mortgage Bonds are trading lower this morning and surprise, surprise they are sitting right on the 200 day moving average. On Monday bonds broke through and closed above the 200 DMA and did trade below it yesterday but closed in positive territory at the end of the trading day. Technically yesterday was a bulls v. bears struggle because of the wide trading range so it could be another day of uncertainty in the mortgage bond market.
Productivity and ISM Index both came in better than consensus and stocks have been down over the past few days so I expect a weaker bond market at least this morning.....if you took advantage of yesterday's reprice and locked you are in good shape, otherwise it is a wait and see what bonds do at the key level.
Unemployment numbers to be released Friday which should see some big revisions to last month's numbers, expect the markets to move.