Markets Take A Breather Before Friday's Job Reports

Both the European Central Bank and the Bank of England left their respective interest rates on hold, relieving some of the pressure on the U.S. dollar. Had rates increased, it would have increased the relative return of investing in euro- or pound-denominated instruments versus investing in dollar-denominated instruments. This would have drawn dollars from mortgage bonds and have pushed rates higher. But, it didn't. Instead, mortgage bonds are flat right now as traders prepare for tomorrow's jobs report. Whispers on...

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[Source: The Mortgage Reports Blog]