Bond Markets Slightly Stronger After Quiet (Nonexistent) Overnight Session
Cash trading in US Treasuries was closed overnight due to market closures in Tokyo and London. There wasn't a total absence of activity, however, as futures remained open.
Movement was limited, but took initial cues from weaker data in China. Some measure of bond market positivity also remains in place from ongoing geopolitical risk.
The tone has remained positive through the first hour of domestic trading with 10yr yields prodding Friday's lows, but not yet breaking them--currently down 1.6bps to 2.577. Fannie 4.0s are 3/32nds higher at 105-05, right in line with Friday's best levels.
This morning's significant data arrives at 10am with ISM Non-Manufacturing, expected to come in at 54.4 vs 53.4 previously.