Mortgage bond prices opened higher this morning pushing rates lower.

There is no economic data today. However this week brings 2/5/7-year auctions and Q2 GDP.

Europe continues to slide toward the financial abyss. News out of Spain over the weekend indicated various regional governments are seeking financial assistance. Spain's 10 year borrowing costs surged higher to near the 7.5% mark. These regional governments must refinance billions in debt and are struggling to find a solution.

Spain isn't the only concern as the Greek prime minister indicated the country was in a "Great Depression."

The flight to quality buying of U.S. debt instruments continues. In the short term this is great for U.S. mortgage interest rates. However, the future remains uncertain. Escalating oil prices could ignite inflation fears which would create a dire situation for economies across the globe.