Bond Markets Battle Back After Weaker Overnight Trading
Treasury yields moved slightly higher overnight, extending Friday afternoon's weakness in fairly linear fashion. The weakness ended when European markets came online. German Bund yields opened several bps higher (they hadn't had a chance to take part in Friday's sell-off), but began improving from there.
Treasuries started the domestic session a few bps higher. 10yr yields briefly hit 2.44 but are currently back down to 2.418, close to breaking even. MBS started 1 tick lower and are now 3 ticks higher. Domestic bond markets have been cautiously advancing this morning as European bond markets have been holding ground or improving.