Bond Markets Hold Ground Overnight, Extending Gains in Light Volume
Treasuries trickled sideways to begin the overnight session with yields never going higher than Monday's highest. 10's began improving into European hours despite German Bunds making new yield highs.
Volume has been light in the absence of significant data or events. Both the domestic and overseas accounts that are trading have treated 2.81% in 10yr yields as supportive ceiling pending more compelling reasons for weakness.
As such, if yields aren't moving higher, they're moving lower--albeit modestly. 10's are down to 2.768, Fannie 3.5s are up 6 ticks to 100-16 and Fannie 4.0s are up 4 ticks at 104-03. Again, there is nothing significant on the calendar today and so far, it's turning out to be a modest, corrective bounce back against yesterday's data-driven weakness.