| Oct 11, 2011 4:43PM On Friday, we talked about how the Employment Situation Report contributed to higher Mortgage Rates . The optimism surround the European debt crisis has also been hurting interest rates, and markets would have needed some very bad news out of Europe in order to reverse the momentum for higher rates that took shape last week. Unfortunately, nothing reversed that momentum, and rates are significantly higher than last week. If you're seeing local or national news talking about rates in the "high 3's... Oct 11, 2011 3:19PM "The trend is your friend," or "play the range until the range plays you..." Two of the commonly heard phrases during periods like the last 2 months in bond markets. Last week's NFP in conjunction with optimism over the European debt crisis sent yields well out of their reliably-travelled trend channel and we awaited today's trading as confirmation or rejection of that breakout. With zero exceptions, 10yr yields traded inside a trend channel outside which, yields never closed for two days in a row...
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