Mortgage Bond prices have improved this morning after the market begins to move into bonds as a safe haven with the news of war between Israel and Hamas, which could lead to oil sanctions among other concerns. Additionally, the rise in treasury yields has led some Fed officials to suggest that more rate hikes this year is less likely to happen.

This dovish sentiment has also bolstered the bond market as investors begin to price in an improved likelihood of holding rates where they are. Fed officials will be keeping a close eye on the inflation data that is scheduled this week with PPI tomorrow and CPI Thursday.