Excessively Light Trading Activity; Treasuries/MBS Flat-Lining
The week is turning out to be every bit as exciting as it was likely to be given the absence of major calendar considerations. After losing ground into the 11am hour, bond markets found support and made some positive progress. The caveat on said progress is that it hasn't been able to take Treasuries or MBS into positive territory day-over-day.
In fact, both have effectively flat-lined since noon. We're not seeing any signs of trading being motivated by anything interesting--just the sort of capital markets housekeeping that's incapable of kicking off momentum in either direction.
All 100+ of the MBS quotes of the past 2 hours haven't been more than 2 ticks apart. Rounding to the nearest bp, 10yr yields haven't moved at all since Noon (i.e. 2.61% the whole time--nearly 3 hours now). We're definitely already resigned to waiting on tomorrow for more meaningful movement, if not longer. That's not to say we couldn't see meaningful movement at any time when it comes to financial markets, just that if it's not currently on the horizon.