Bond Markets Back in Positive Territory After AM Weakness
Treasuries had, in fact, traded in positive territory for most of the overnight session though they began moving higher in yield, following German Bunds amid a lack of other guidance.
Fed's Bullard was out earlier with several headlines to which much of the movement was attributed. The problem with those headlines is that the ostensible market movers among them arrived after volume and selling had already popped. Most telling is the fact that equities volumes didn't spike at the same time--or at all really.
Still, it's possible that some of the volatility around the open was Bullard-related, but it's less consequential here an hour and half later as trading levels are right back where they were before the selling began. That brings MBS and Treasuries both a tick into positive territory.
There is no scheduled data today, though we'll hear from three more Fed speakers. Running in the background will be the quadruple witching day, which is funny market-speak for the Friday on which the 4 main categories of futures and options expire. It has no inherent implication for positivity or negativity, but can add to volatility and seemingly random tradeflows.