Bonds Rally Improves Rates Amid Jobs Week Volatility
April 2, 2026
Mortgage bonds rallied this morning, bringing some relief to rates despite stronger-than-expected economic reports. Optimism around potential resolution to the Iran conflict helped counter data like robust consumer confidence. With a packed week culminating in Friday's major employment report, volatility remains high for borrowers.
Bonds advanced sharply today, equivalent to about 0.25 discount points better on mortgage pricing, even as consumer confidence exceeded forecasts. This upward movement in bonds signals improving rate trends amid geopolitical hope overshadowing solid economic indicators. A busy slate of reports, including Retail Sales and ISM services, leads into tomorrow's pivotal jobs data on April 3, which could drive significant swings. MBS showed a -21bps movement, reflecting the day's bond strength. Loan officers advise locking 7- or 15-day pipelines while considering floats for 30 days or longer.