Last Updated: 11/07/2007

Wednesday's bond market has opened up only slightly despite sizable stock losses and favorable results from this morning's economic news. The stock markets are well into negative territory with the Dow down 135 points and the Nasdaq down 30 points. The bond market is currently up 3/32, which will likely keep this afternoon's mortgage rates close to yesterday's levels. The Labor Department reported this morning that worker productivity rose to a 4.9% annual rate during the 3rd Quarter. This was much higher than was expected, which good news for bonds. Also worth noting about the report was a decline in unit labor costs that eases wage inflation concerns. However, the bond market's reaction to the news has been tempered, preventing an improvement to mortgage pricing.