Good morning and happy Friday. The benchmark bond has shrugged off the early morning propensity to sell which was driven by better-than-expected economic data. Investors are pushing bond prices higher, albeit slightly. It is currently up 6 basis points and is hovering above both the 1st level of resistance as well as the 10 day moving average. Closing above these levels might indicate a possibility of some follow through on Monday; of course we had a nice Friday last week and did an about face on Monday so sometimes momentum works and sometimes it doesn't. Here's the chart:
It's a good time to lock if you have a loan closing soon but if you have some time, I wouldn't be afraid to float heading into Monday. If you do float, make sure you stay on top of the market so that you can lock quickly if it turns against you.
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