Bond Markets Unchanged and Uninspired
The week continues to suffer from a lack of participation and excitement (not that excitement is always what we'd want to see when it comes to rates). Although market participants returned from holiday breaks in Asia and Europe, it didn't do a whole lot to reveal any directional biases.
Case in point, Treasuries were insignificantly stronger, then weaker overnight and have been hovering around unchanged levels since the domestic session began. MBS opened a few ticks weaker and gained them back in the first hour. Fannie 4.0s are 1 tick from unchanged and 3.5s are 2 ticks weaker.
The only significant economic data of the day is Existing Home Sales at 10am. Normally, it would make some sense to point out that it's earnings season and uninspired bond markets might take cues from stocks, but so far, the stock lever has been fairly disconnected.