Bonds are holding steady into midday. UMBS 5.0 is unchanged at 98.22 — same 13-tick gain from Thursday's close — while the 10-year yield has drifted to 4.483%, up less than 2 basis points from this morning.

No drama from ISM services data this morning, which is exactly what the market needed after last week's big move. The rally built on the June jobs miss is intact, and there's nothing on today's calendar to disrupt it. Thursday's jobless claims are the next real catalyst. For now, the rate picture is stable — what borrowers saw at 9 AM is what they'll see at close.

— David Burson, NetRate Mortgage