Well the bond market is currently down a few clicks, but Friday's almighty Employment report could send bond traders in either direction.

Today's bond market has opened down slightly after this morning's economic report showed stronger than expected results. The stock markets are posting strong gains with the Dow up 75 points and the Nasdaq up 22 points. The bond market is currently down 3/32, but we likely will see little change to this morning's mortgage rates.

True, but what about the long-term prognosis and foreign appetite. I agree that the technical signs still look good. We're basically back to business looking fairly normal. But foreign investment helped us get through the last year and now a pull back could change things.

I have herd a couple of times that the effect of foreign invesment is a bit overated, but When Bill Gross talks about bonds I listen and he indicates that China pretty much dictates the 10 year. I am worried about the dollar and inflation. Those both point to rising rates. So much of what we buy has a price determined by the value of the dollar as that lowers because we have issued so much debt doesn't that have to drive up the price of goods? Luckily this is agradual and also stops the economy from growing to fast these trends seem at odds, but I think we are in for gradual changes and nothing that will effect the industry as much as how risk is going to be assesed in the near future. My two cents