Bond Markets Slightly Weaker as Stocks Rally
MBS and Treasuries have given back a portion of yesterday's gains, but are holding their ground so far in the domestic session. The weakness was a product of the overnight session where S&P futures began pushing back against yesterday's massive drop.
10yr yields rose roughly 3bps by the open and have held steady since then. Fannie 4.0s opened 7 ticks weaker, but are now only 5 ticks weaker at 104-31.
Comments from Fed's Lacker at 8:30am had no impact and the other calendar events this morning are not major market movers. The best recent bet has been to assume correlation between bond yields and stock prices. As such, any big moves in equities would likely be the most potent source of inspiration for bond markets.