Bond Markets Slightly Stronger Overnight; Range Remains Intact
Almost any movement that occurs in the context of "the range" will struggle to be interesting. This is due both to the narrowness of the range and its persistence. As noted in The Day Ahead, this has been going on for 19 straight days--the longest flat streak of the year.
Treasuries pulled back less than 2bps during Asian market hours, but weak European data proved to be a bigger consideration for global bond markets. Core European debt rallied as weaker-than-expected PMI's (Purchasing Manager's Indices) came out in Germany, France, and the combined Eurozone.
Treasuries followed the move lower in yield. While this hasn't yet threatened "the range," it's still a noticeable improvement from Friday. 10's are currently down 3.23 bps at 2.592. MBS are underperforming but still following the move with Fannie 3.5s up 5 ticks at 102-16.
The day's only significant data is out at 10am with Existing Home Sales.