Mortgage bonds prices remain lower this morning erasing the small gains from yesterday afternoon and pushing interest rates higher. Weekly jobless claims were 460k, slightly higher than the 455k expected. Preliminary Q1 GDP rose 3%, weaker than the expected 3.4% increase. This was generally bond friendly and helped to counter the global news a bit but with surging stocks all bets are off. The DOW is currently up over 140 points. Global equities generally rallied following announcements by China that they would not sell some of their European bond holdings. US stock futures pointed toward a higher open and that strength was seen so far with stocks remaining positive this morning. As we continue to state, this is not the end of volatility so stay alert. We have a 7YR Treasury note auction this afternoon.
Carlos Figueira - Keypoint Mortgage 