As fun as it is to be cynical about the market movers getting the most attention, today's strength in bond markets really was mostly about Ukraine. This was apparent for a few reasons, not the least of which being that a majority of the gains occurred during the overnight session following Ukraine-related headlines.
From those opening levels, Treasuries and MBS are only in modestly stronger territory now, and spent most of the afternoon right in line with them. ISM Manufacturing--typically a noticeable market mover--had little impact today, suggesting there were bigger considerations at hand.
For now, the positivity for bond markets seems somewhat tentative, as these gains weren't exactly expected after the strong month-end buying seen on Friday. Once it became apparent that we weren't going to see a quick correction back toward weaker levels, several lenders repriced positively into the PM hours.
Tomorrow's calendar is the lightest of the week and thus remains sensitive to geopolitical guidance for better or worse.
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