Mortgage bonds opened lower today as stock markets across the world rally.
- Financial markets are cheering the 90-day truce announced over the weekend between the US and China over their trade dispute.
- Oil prices are also rebounding, and UK and Italian leaders were upbeat of their respective issues regarding Brexit and Italy's 2019 budget.
- All this good news means that mortgage bonds are likely to give back some of their recent gains.
- This week's economic calendar is quite full, and the highlight will be Friday's closely-watched jobs report.
- It's important to note that financial markets will be closed on Wednesday for a Day of Mourning in honor of President George H.W. Bush.
What should you do about it?
Watch and see if mortgage bonds can hold their ground, but be prepared to lock your rate if mortgage bonds start falling back toward their 30-day moving average.