The 101.50 level is a key level of technical support. This price area must hold or it may get even uglier real soon.
Good news is that the bond market is only open until 2 PM EDT today and is closed on Monday.
Should be a good thing to have some days of rest and contemplation. Hopefully, that will bring better mojo on Tuesday.
Also, another element to note is that all the refinance applications taken during late April and the first few days of May will be closing and the prior loans paid off in late June and early July. Why is this important? Well, the Federal Reserve owns a lot of these loans right now and will take the cash from the prepayments and redeploy into new purchases. That added money supply should provide more support for higher bond prices in the near future.
As always, this market is a complicated one and manipulated one so super hard to predict!
Did you know that I can handle a mortgage financing need in all 50 states? Yep! If you want the help of a seasoned pro, just reach out and engage me. -- Brett
www.BrettGrendahl.com
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