Bond Markets Slightly Weaker Overnight; Holding Ground in Domestic Session
It's been a slow start to the week with very little movement so far in the domestic session. Before that, Treasury yields moved slightly higher in the overnight session.
Reasons for the weakness include a general decrease in the level of geopolitical anxiety as well as a simple technical bounce foreshadowed by 10yr yields inability to get below 2.466 on Friday afternoon. All bond markets have really done is pull back just slightly from there.
That made for a few ticks of weakness for MBS at the open. Since then, Fannie 3.5s have moved up from 102-09 to 102-11. There haven't been any major market-moving headlines or instances of scheduled data.