Bond Markets Move Into Positive Territory after Early Weakness
There's nothing happening in markets today! While this is consistent with the thoughts in the Day Ahead, it's been perhaps even more uneventful than I thought it would be.
Volume is absent and ranges are narrow. MBS are 1 tick better than yesterday's latest levels and 10yr yields are a third of a bp lower. The yield curve is split evenly between losses in the short end and gains in the long end, which has been the post-Fed theme.
There are no significant economic reports today and there is nothing new that the several Fed speakers can tell us, because again... there was nothing interesting about the actual FOMC Announcement itself. We knew qualitative guidance was coming and that it would be open to interpretation. The only interesting thing a Fed official could say would be to candidly discuss the shift in perceptions on the rate hike, and they're not likely to touch that one with a 0 to .25 foot pole.
Tradeflows surrounding Treasury Options expiries remain just about the only source of inspiration--not that we've seen any yet. Apart from that, Ukraine headlines still have some life left in them, but the bar is moving ever higher. Some of today's offerings should have had more of an impact than they've had.