From a technical standpoint the relative strength indicator has shot up and is now closer to overbought than the mid-point. The FNMA bond is bumping its had on the first level of resistance and breaking through that would only mean that it has to fight with the second level of resistance which is just 26 basis points higher than the first.
Tomorrow's Thursday. If you have read my posts on a regular basis you know that that means one thing: it's...Jobless Claims Thursday. It's also a 2nd thing...my son's 14th birthday, but I digress. We also have a few data pieces on Friday so you may want to take advantage of our recent improvements and lock or you can risk it for what's behind door number 1 - Jobless Claims numbers and / or door number 2 - jobless claims numbers and Friday's data (Chicago Purchasing Manager's Index, GDP, U of M Consumer Sentiment Index and Pending Home Sales). What will it be?
At any rate (of course it's a pun), a final check of the benchmark bond shows it has slid back a bit and is now only up 2 basis points on the day. Make it a great day and feel free to call me if I can help with anything mortgage related: 702-812-1214.