Bonds have edged slightly higher since this morning. UMBS 5.0 is at 98.75, up 3 ticks from the open. The 10-year yield has drifted down another basis point to 4.375%. The 30-year rate holds at 6.53%.

This is exactly what a consolidation day looks like. No new data to push bonds in either direction, and the market isn't generating its own momentum. That's fine — the week's gains are intact, and holding them heading into a long weekend is the win. Quarter-end closes Tuesday. The institutional rebalancing bid that powered Wednesday's rally is mostly spent, but there's no reason to give rates back today either. The path of least resistance into the weekend is flat to slightly better.

— David Burson, NetRate Mortgage