Friday's bond market as opened in negative territory as yesterday's selling carries over into today's trading. The stock markets are showing gains with the Dow up 45 points and the Nasdaq up 13 points. The bond market is currently down 7/32, which will likely push this morning's mortgage rates higher by another .250 - .375 of a discount point over yesterday's morning rates.

Today's only economic news was April's Goods and Services Trade Balance data. It revealed a surprising trade deficit of only $58.5 billion,. This was much lower than the $63.5 billion that was expected and a sizable drop from March's revised $62.4 billion deficit. However, this data is not considered to be of high importance and with the global inflation fears that are currently crushing the bond market, data such as this has no impact on trading.

The bond market is again showing sizable losses, but if it is any consolation, they are currently well off earlier lows. The benchmark 10-year yield is currently at 5.13% after touching 5.22% during pre-market trading. This indicates that the worst of the selling is likely over, which should keep mortgage rates at current levels.

Next week brings us the release of a couple of relevant economic reports, but two are of the most interest. They begin Wednesday, so the first part of the week will likely be relatively quiet. There may be some anxiety in the market about the upcoming reports, but I don't expect to see mortgage rates move much, either up or down, from current levels until we get to those releases. Look for more details in Sunday's weekly preview.