Market Update - Wednesday, June 8, 2016

What's going on and why does it matter?
Mortgage bonds are continuing to drift sideways amidst market uncertainty.  Oil prices are at their highest levels in nearly a year (bad for bonds), but China reported weaker than expected export data, and the World Bank reduced its global economic growth forecasts (both good for bonds).  The Fed is scheduled to purchase up to $2.375 billion in mortgage bonds today, which may help to keep bond prices in positive territory.  The economic calendar is light this week, with the JOLTS report scheduled to come out later today.  The market may be in a holding pattern until the Fed issues its monetary policy statement next week.  In the meantime, and in the absence of any major news, mortgage bonds may continue to drift sideways.