Coasting Out, Little-Changed Since AM
Volatility came and went early today for bond markets. In fact, the only real volatility existed inside a fairly narrow range that would have barely registered on Tuesday. For MBS, it's been a 3/32nds range since 11:30am.
Treasuries were only slightly more volatile as large, inexplicable trades flow in and out surrounding an exceptionally heavy slate of corporate bond issuance. (If you need a refresher on how corporate bond hedging can trickle down to MBS via Treasuries, check out this old post on last Fall's Verizon deal).
Despite the lack of substantive gains, several lenders repriced positively. MBS are drastically outperforming Treasuries on a lack of supply, a supportive-looking technical relationship between the two, and the aforementioned corporate hedging taking a more Treasury-specific toll. Then of course there's the geopolitical risk 'unwinding' process which also affects Treasuries more than MBS.
All this is minutia in the bigger picture as bond markets have merely sought out central territory from which to digest tomorrow's jobs data.