Two weeks ago, we discussed how markets may be pricing terror threats into bond markets, or ignoring them altogether.  This was noted after a thwarted terrorist operation in London caused relatively no change in mortgage rates.

Here's some more fodder for the Terrorism Decoupling From Mortgage Bonds hypothesis.

Monday, headlines read that North Korea was shutting down its nuclear reactors and Bloomberg confirms that today.  North Korea is considered a geopolitical threat and its nuclear weapons are rumored to have the range to reach idyllic Madison, Wisconsin.

There was no related reaction in Monday's mortgage markets.

(Author's note: Madison has produced a few weapons of its own, most notably Ron Dayne and Brooks Bollinger, both equally capable of destroying an NFL team's hopes of winning the Super Bowl.)

Related to North Korea's nuclear ambitions, of course, is the constant terror threats of various cells operating across the globe.

Today, papers are screaming about the seriousness of terror threats against the United States.  And still -- in the mortgage markets -- a muted reaction from traders.

The mortgage market action this afternoon is related to Ben Bernanke's non-threatening testimony to Congress.  Markets are interpreting the Fed Chief's comments to mean that the Fed will keep likely leave the Fed Funds Rate at 5.250% for the foreseeable future.

Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.