The morning has been exceedingly quiet so far, with no volatility to speak of. MBS and Treasuries were both approaching the weakest edge of their recent ranges (in effect for most of June), and with moderate overnight strength, simply maintained those ranges.
With just over 2 hours to go until the FOMC Announcement, it doesn't look like trading levels will find cause to head back to range boundaries before then.
There were no significant economic reports this morning and no market-moving headlines. Stocks are just slightly lower, but still near yesterday afternoon's latest levels. Fannie 3.5s have been trading between 2 and 6 ticks better, averaging an eighth point gain. 10yr yields have been averaging 2bps of improvement at 2.633. The upper range boundary is at 2.66.
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