Yesterday, Treasury prices dropped as initial jobless claims fell and existing home sales jumped more than predicted. Today, Treasuries are relatively flat to yesterday’s close. With no economic data, Treasuries and mortgage bonds will take their queues from equities.
Long-term interest rates continue to remain low for the year and employment is strong. Those two factors are contributing to a robust housing market and a boom in homeowners refinancing their mortgages from adjustable to fixed-rate mortgages.