Last Updated: 10/02/2007

Tuesday's bond market has opened in positive territory as yesterday's buying seems to be carrying over to today. There was no relevant economic news scheduled for today, but early stock weakness is also contributing to this morning's gains. The stock markets are showing losses with the Dow down 46 points and the Nasdaq down 3 points. The bond market is currently up 8/32, which will likely improve this morning's mortgage rates by approximately .125 of a discount point over yesterday's morning rates. There is no further important economic news scheduled for release until Thursday morning. Until then, expect the stock markets to heavily influence bond trading. With the major stock indexes on a recent rally, there is some expectation of a pullback. This could lead to shifting of funds back into bonds. However, if the rally seems to continue, bonds may suffer, leading to higher mortgage pricing. Here's to a successful week!