Serious volatility in the market today with an unexpected release of an economic report (the ISM Services). Due to the early release of the report, stock markets suffered this morning and turned the bonds in an upward direction yet again.
Currently the MBS is trading 28bps higher than yesterday, and the 10-Year Treasury is 44bps higher as well.
With regard to locking and floating, I would consider floating my clients to the end of the afternoon and really watch what the overall bond market does with a close watch on the stock market movement as well. If the stocks start making a late day comeback, lock in your pricing to save from a loss tomorrow (if your client is closing in 7 days). If not, keep floating since the reward is greater than the risk at this point.
