On a technical note, mortgage bonds are down 5 straight session at 216 bps points....rates have rose to the 6.625% area on a conventional 30 year fixed. Bonds are oversold, which generally indicates that the buyers will be back and drive prices back up. When bonds drop suddenly they have a tendancy to retest half of their loss so in this case upside of above 100 bps...there is no guarantee and a lot with have to do with what the future economic indicators say, but technically it hopefully will happen
That being said bonds are trading high by 28 bps going into the retail sales number.
