Bond Market Update

Bond Market Update

Market Update

Wednesday, April 8, 2020

What's going on and why does it matter?
Mortgage bonds are continuing to drift sideways, riding their 10-day moving average. Today is the last full trading day of the week, with the bond market scheduled for an early close tomorrow and a full close Friday. Stocks are set to open higher this morning in what is likely to be another volatile day for the financial markets. It's still unclear how long the economic lockdown will remain in force, although positive signs are starting to emerge across the world. Wuhan, China where the coronavirus originated, is no longer on lockdown, while countries such as Denmark, Norway, and Austria are looking to begin relaxing some of their lockdown restrictions in the coming days. 

What should you do about it?
Watch and see if mortgage bonds can hold their ground, but be prepared to lock your rate quickly if bond prices break below their 10-day moving average.

Economic Calendar

Economic reports that may impact mortgage rates this week:

Date Report Period Prior Est. Actual
Tue 7 Apr JOLTS Job Openings Feb 6.963M - 6.882M
Thu 9 Apr Initial Jobless Claims Week of Mar 30 6.648M 3.500M  
Thu 9 Apr PPI final demand Mar -0.6% -0.3%  
Thu 9 Apr U of Mich Consumer Sent. Apr 89.1 75.0  
Fri 10 Apr CPI Mar 0.1% -0.3%  
Fri 10 Apr Core CPI Mar 0.2% 0.1%