Bond Markets Moderately Stronger in Quiet Trading, Limited Calendar
Treasuries were docile overnight. Volume was fairly light, as was motivation, with the most significant trading cues coming from the observation of other trades (rather than economic data and events). Slightly weaker German Industrial Production and Eurozone Investor Confidence perhaps had a mild positive effect, but that's a stretch.
10yr yields began the night at 2.87 and worked their way down to 2.846 by the domestic open. Fannie 4.0s opened right in line with Friday's latest levels and are currently up 3 ticks at 103-28.
There is no significant economic data on the calendar today with the only potentially relevant events being 3 Fed speeches at 12:50, 1:05, and 2:15pm. There are two instances of scheduled Treasury buybacks from the Fed (usually just one/day), and with the limited calendar, we could see some tradeflow motivation around the conclusion of these at 11am and 2pm.