Rates moved higher after the market interpreted one closely watched economic indicator as somewhat positive ahead of prepayment reports the market will see when it reopens Tuesday. The benchmark 10-year Treasury yield that generally serves a rough indicator of mortgage rate direction was at 3.43% midday Friday, up from 3.33%, where it was at roughly the same time the day before. Art Frank, director and head of mortgage backed securities research at Deutsche Bank Securities, New York, said after Friday's employment-related numbers, the next anticipated major release expected to be seen in the mortgage bond market that drives rates are prepayment reports that market will likely see on Tuesday.
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