Bond markets were just slightly stronger overnight. Tradeflows in Treasuries haven't been infinitely more robust than Thursday or Friday, but they are showing the expected signs of life. MBS haven't been much more active than last week, but liquidity has improved. This helps MBS keep better pace with Treasury movements.
Both began the session modestly improved compared to Friday's latest levels. The slightly weaker ISM Non-Manufacturing data led to further improvements. Treasuries made it to their lowest yields since the overnight session of Dec 26 and MBS have just barely matched their 2-week high seen on Thursday (103-07 in Fannie 4.0).
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