Bond Markets Stronger Overnight; Still Moving Inside Narrow Range
Treasuries began the overnight session in slightly better shape during Asian hours. At the European hand-off equities slumped and bond improved just a bit more. All told, the move has been moderate and volumes have been as light as we'd expected from a relatively paralyzed market.
10yr yields have now returned to 2.614, which is one of their lower-middle pivot points from last week. The broader range is 2.58 to 2.663.
For their part, MBS are pushing the upper limits of their recent range with Fannie 3.5s up 9 ticks to 102-03. It's worth noting, however, that tomorrow will be the last day to trade October deliveries and November is trading roughly 10 ticks lower at the moment (meaning that by the time we account for the MBS settlement cycle, they too have been easily inside recent ranges so far this AM.
Consumer Credit is the only piece of Economic data out today, but this isn't likely to slake much of the thirst for relevant insight to economic conditions. That's the heavy lifting that only the payrolls report could have done, and to a lesser extent, several of the week's other reports that won't be reporting unless the shutdown ends.