Mortgage Bonds are trading higher so far today, but off their best levels. The bond market continues to attract investment dollars as a safe haven from the ongoing - and increasing uncertainty of the situation in Greece.
Today, over 40,000 Greeks are rioting in the streets, engaging in violent protests against the Greek Government's proposed austerity measures. This has spooked the Stock market, and is helping Bonds move higher. Further - another troubling headline is coming from the Eurozone today, as Portugal is apparently facing another potential downgrade on their debt - prompting investors to move even further into the safe haven of Bonds.
Market volatility has been sharply higher of late, and the VIX volatility index -which measures volatility in the Stock market - has risen very sharply over the last four trading sessions. The VIX is a widely used measure of market risk, and is oftern referred to as the "investor fear guage."
While Bonds are higher-they are near their resistance levels marked by the highs seen back n February and March. Additionally, Bonds are now in an overbought state, making them ripe for a reversal lower.
If you are obtaing a loan on a mortgage, now just might be the best time in two or three months to "lock" your loan until closing!
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