Last Updated: 12/12/2007

Wednesday's bond market has opened down sharply, giving back nearly all of yesterday's gains. The stock markets are rallying today, recovering more than half of yesterday's losses. The Dow is currently up 164 points while the Nasdaq has gained 46 points. The bond market is currently down 46/32, which will erase all of yesterday afternoon's improvements in rates. This will take mortgage pricing back to near yesterday's morning rates. Today's only economic news was irrelevant to the volatility in the markets. October's Goods and Services Trade Balance was posted this morning, showing a $57.8 billion trade deficit. This was a little larger than expected, but due to its low importance has not affected bond trading or mortgage rates.